LONDON: Copper prices fell to four-month lows on Tuesday as expectations of further rises in exchange inventories and the soaring dollar reinforced concerns about demand for industrial metals.
Benchmark copper on the London Metal Exchange (LME) was down 0.3% at $8,028 a metric ton in the official ring. Prices of the metal used widely in the power and construction industries earlier fell to $7.956.5 a ton, the lowest since May 26.
Stocks of copper in LME registered warehouses at 168,600 tons have climbed more than 200% since the middle of July and are at their highest since May last year.
A Europe-based trader said the physical copper market was subdued. “I would not be surprised even if more copper would be delivered onto LME.”
This, he said, was despite the closure of Boliden’s Ronnskar smelter in June which would normally have meant consumers looking for copper in the physical market.
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