Copper declines on robust US dollar, virus worries

Copper prices fell on Thursday as the US dollar strengthened and as rising global cases of the novel coronavirus dashed hopes of a quick economic recovery.

The dollar held onto gains, making the greenback-priced metals more expensive for holders of other currencies, as signs of an economic slowdown in Europe and the United States revived fears about the fallout from a second virus wave.

"Metals are under pressure from the stronger dollar," said commodities broker Anna Stablum of Marex Spectron, adding that investors were reducing risk exposure as hopes have faded about more US stimulus ahead of the US presidential election.

"As they (virus cases) are rising again in parts of the United States and Europe, it means the recovery will be slower," she said.

The global tally of infections crossed 31.7 million, with deaths at 971,130, as per a Reuters tally.

Three-month copper on the London Metal Exchange fell 0.9pc to $6,544 a tonne by 0703 GMT, while the most-traded November copper contract on the Shanghai Futures Exchange declined 1.8pc to 50,640 yuan ($7,422.17) a tonne.

FUNDAMENTALS

China remained a net importer of aluminium for a second consecutive month, with August imports surging eightfold from a year earlier.

ShFE aluminium closed down 3.7pc at 13,940 yuan a tonne, having hit its lowest since July 17 at 13,760 yuan a tonne earlier in the session, while zinc fell 2.1pc to 19,230 yuan a tonne.

LME nickel fell 0.9pc to $14,305 a tonne and tin dropped 1.7pc to $17,540 a tonne.

The global nickel market surplus narrowed to 8,900 tonnes in July from an upwardly revised 14,700 tonnes the previous month, the International Nickel Study Group said on Wednesday.