Copper stumbles as risk-off sentiment ahead of US elections weighs
XLB•Copper fell 1.27% to $14,163.50 a metric ton on the London Metal Exchange as risk-off sentiment ahead of the US midterm elections and a weaker yuan weighed on prices. Losses were limited by tight physical supply in China, where warehouse stocks were down more than 75% from six months earlier.
1. Copper prices fall
Benchmark three-month copper on the London Metal Exchange fell 1.27% to $14,163.50 a metric ton. The most-traded Shanghai Futures Exchange contract edged 0.18% lower to 108,380 yuan a ton.
2. China supply supports prices
A stronger dollar against the yuan made dollar-priced commodities more expensive for Chinese buyers. Losses were limited by a Yangshan copper premium near a more than decade-high $200 a ton and SHFE-monitored copper stocks of 44,612 tons, down more than 75% from six months earlier. BNP Paribas metals strategist David Wilson said Chinese smelters were easing production rates, which he described as normal for this time of year.
