Copper slides as ship blocking Suez partly refloated

LONDON: Copper prices slipped on Monday as worries about higher freight costs receded after salvage crews managed to move a container ship blocking the Suez Canal and a higher dollar reinforced negative sentiment.

Benchmark copper on the London Metal Exchange traded down 0.3% to $8,937 a tonne in official rings. Prices are down 7% since hitting 9-1/2-year highs of $9,617 last month.

"The blockage in the Suez Canal made people think about higher costs of transporting metal. It's not over yet, but the ship is moving," a copper trader said. "The higher dollar is another reason behind funds selling."

SUEZ: A container ship blocking Egypt's Suez Canal for nearly a week has been partly refloated, raising hopes the busy waterway will soon be reopened.

DOLLAR: A rising US currency makes dollar-priced metals more expensive for holders of other currencies, which could subdue demand.

INVENTORIES: Weighing on copper are stocks in LME registered warehouses. At 132,050 tonnes, they are up nearly 80% since the beginning of March.

However cancelled warrants - metal earmarked for delivery - at 28% and two companies holding large numbers of warrants have stoked concern about availability on the LME market and created a premium for the cash over the three-month copper contract.

CHINA: Support for industrial metals comes from a surge in profits at China's industrial firms, highlighting a rebound in its manufacturing sector and a broad recovery.

Surveys of manufacturing activity in China later this week are expected to show activity expanded more quickly in March.

OTHER METALS: Aluminium fell 0.8% to $2,279 a tonne, zinc was down 0.2% to $2,823.5, lead gained 0.3% to $1,958.5, tin slid 0.9% to $25,350 and nickel lost 0.5% to $16,302.