Copper falls over 1% on firmer dollar amid Europe virus scare
- Three-month copper on the London Metal Exchange was down 1.3% at $8,859 a tonne by 0450 GMT, having hit $8,850 a tonne earlier in the session, its lowest since March 19.
HANOI: Copper prices fell more than 1% to their lowest in nearly a week, as a stronger dollar made greenback-priced metals more expensive to holders of other currencies.
Three-month copper on the London Metal Exchange was down 1.3% at $8,859 a tonne by 0450 GMT, having hit $8,850 a tonne earlier in the session, its lowest since March 19.
The most-traded May copper contract on the Shanghai Futures Exchange declined 0.9% to 65,900 yuan ($10,088.18) a tonne.
The safe-haven dollar, which hit a four-month high against the euro on Thursday, has been supported by worries over potential US tax hikes and Europe's third COVID-19 wave amid extended lockdowns and delayed vaccine rollouts.
"Key bullish indicators including investors' net speculative position, the US dollar's relative value and copper inventories are showing signs of trend reversal which we expect will play against the copper price rally," said Fitch Solutions in a note.
FUNDAMENTALS
- LME cash copper was at a $4.25 a tonne discount to the three-month contract , its biggest discount since Jan. 21, as inventories in LME warehouses have jumped 64% so far this month.
Yangshan copper premium fell to $64 a tonne, its lowest since Jan. 12, while latest SMM data showed bonded copper inventories were at their highest since July 2019 of 377,800 tonnes.
LME nickel inventories climbed to their highest since July 2018 at 261,660 tonnes.
LME aluminium fell 0.8% to $2,239 a tonne, nickel declined 0.7% to $16,075 a tonne and lead was down 0.9% at $1,923 a tonne.
ShFE aluminium rose 0.3% to 17,105 yuan a tonne, nickel decreased 1.5% to 120,140 yuan a tonne and lead was down 1.7% at 14,930 yuan a tonne.
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