Copper prices fall for fourth day on stronger dollar

LONDON: Copper prices fell on Tuesday as rising coronavirus cases strengthened the dollar and cast doubt on a speedy rebound of some economies and plentiful supply of the metal sapped its appeal.

Three-month copper on the London Metal Exchange shed 1.5% to $9,246 per tonne by 1120 GMT, in its fourth straight session of declines. The metal is nicknamed "Dr Copper" for its use as a gauge of global financial health.

"The market is in a wait and see approach and is lacking a major driver so the currency is leading metals trading," said Gianclaudio Torlizzi, partner at consultancy T-Commodity.

The ruling Communist Party in top metals consumer China is hosting its centenary celebration this week where it could announce measures that could boost domestic demand and consumption, Torlizzi said.

Rising COVID-19 infections boosted the dollar, making assets priced in the greenback such as copper less attractive to global buyers.

The stronger dollar has dragged prices for copper down 13% since a record of $10,747.50 per tonne in May, after the US Federal Reserve shocked the market with a hawkish tilt.

Meanwhile, aluminium prices were boosted by supply concerns in Russia and declining stocks, while lead hit its highest since October 2019.

Russia is preparing new export taxes for steel products, nickel, aluminium and copper.

Three-month aluminium on the London Metal Exchange rose 1.9% to $2,536 a tonne while lead rose 1.8% to $2,274.

INVENTORIES: On-warrant copper stocks in LME-registered warehouses inched 1,350 tonnes lower to 197,025 tonnes but are still nearly 160% higher this year.

SPREADS: LME copper remained in contango, indicating plentiful supply. The discount of LME cash copper to the three-month contract was at about $25 a tonne compared with a premium of $30 in April.

OTHER METALS: Zinc climbed 0.5% to $2,918 a tonne, tin edged up 0.2% to $31,220 and nickel was down 0.7% to $18,165 a tonne.