Metals-Copper sinks to 3-week low as dollar firms, LME stocks rise
XME•Other base metals mostly weaken
Sentiment in metals was weak. Zinc CMZN3 fell 1.9% to $3,807, also touching a three-week low, while lead CMPB3 lost 1% to $1,873, hitting its weakest since August 3. Nickel CMNI3 shed 0.5% to $16,380, notching a two-month low, while tin CMSN3 fell 2% to $52,300, touching its lowest since July 17.
Aluminium CMAL3 was the sole gainer, edging up 0.1% to $3,256.
Copper falls to a three-week low
Copper extended losses on Monday, sinking to a three-week low as an increase in London Metal Exchange inventories eased tightness and a stronger dollar put further pressure on industrial metals prices after last week's selloff on U.S. tariff uncertainty.
Benchmark three-month LME copper CMCU3 was down by 1.2% at $14,065 a metric ton in official open outcry activity. It hit a session low of $14,018.50, the lowest since August 20 and already down 5.9% from the record high it struck last Thursday.
LME inventories rise and the backwardation narrows
LME copper inventories MCUSTX-TOTAL meanwhile increased thanks to 9,600 tons of inflows, of which 4,550 tons were in warehouses in Italy.
The cash LME copper contract last traded at a $36 a ton discount to the three-month forward CMCU0-3, widening from a roughly $10 discount on Friday, signalling easing near-term tightness.
Dollar strength and tariff uncertainty weigh on metals
"Copper has led the decline and now looks to be challenging recent lows, extending the cautious tone following the first weekly loss since June," Neil Welsh, head of metals at Britannia Global Markets, wrote in a note, adding that renewed concern over tighter U.S. monetary policy was weighing on risk appetite.
