Copper prices in London fell on Friday as the dollar firmed on bets of an earlier US interest rate hike that could slow down the pace of global economic recovery.
The dollar headed for its best week in almost five months against major peers, amid expectations of a sooner-than-expected rate increase from the Federal Reserve following a surprisingly strong reading on US inflation.
A stronger dollar makes greenback-priced metals more expensive to holders of other currencies.
An early rate hike could trim liquidity in financial markets and slow recovery in the world's biggest economy. Copper is often used as a gauge of global economic health.
Three-month copper on the London Metal Exchange fell 0.1% to $9,627 a tonne by 0257 GMT, while the most-traded December copper contract on the Shanghai Futures Exchange rose 0.7% to 70,750 yuan ($11,061.95) a tonne.
But losses were cushioned by tight inventories in exchange warehouses, with both copper contracts heading for a weekly gain.
FUNDAMENTALS
Codelco's Chinese customers are reluctant to sign up for copper supply in 2022 at the highest premium in seven years because of strong backwardation in the copper market, three sources with knowledge of the matter said.
LME aluminium eased 0.2% to $2,656 a tonne, nickel rose 0.5% to $19,865 a tonne and tin advanced 0.4% to $37,850 a tonne.
ShFE aluminium increased 2% to 19,475 yuan a tonne, nickel was up 1.7% to 147,140 yuan a tonne and tin jumped 2.8% to 288,750 yuan a tonne.
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