Three-month copper on the London Metal Exchange fell 0.7% to $14,028 per ton, after falling 0.2% in the previous session, according to Reuters. A week ago, copper hit its highest level in six months, supported by a decline in inventories outside the United States.
Nitish Shah, a commodity strategist at Wisdom Tree, said that the market is suffering from a scarcity of supply, but the strength of the dollar and uncertainty about the global economy are putting pressure on prices, while the continuing war in the Middle East keeps the risks of weak growth and demand present.
The dollar puts pressure on metals
The dollar index recorded its highest level in about two weeks, making metals denominated in the US currency more expensive for buyers in other currencies.
In China, the most traded copper contract on the Shanghai Stock Exchange fell 0.7% to 107,410 yuan per ton, while the “Yangshan” premium fell to $95, the lowest level in four weeks.
Losses extended to other metals, as aluminum fell 1.2% to $3,271 per ton, zinc fell 0.9% to $3,725, lead 0.4% to $1,902.50, nickel 0.6% to $16,855, and tin 0.4% to $55,590.
Metal markets are currently moving between support resulting from scarcity of supply and pressures related to the strength of the dollar and fears of a slowdown in the global economy and weak demand.
