NEW DELHI: Copper prices gave up early gains on Thursday as a strong US dollar outweighed support from better-than-expected economic data out of top metals consumer China. Three-month copper on the London Metal Exchange was down 0.2% at $7,957 per metric ton by 0343 GMT.
The most-traded November copper contract on the Shanghai Futures Exchange was 0.2% lower at 66,340 yuan ($9,068.17) a ton.
The dollar held the yen near a two-week low, as growing expectations the US Federal Reserve will keep rates higher for longer had the greenback and US Treasury yields on the rise overnight and markets awaited a speech by Fed Chair Powell.
A stronger dollar makes greenback-priced metals less affordable for buyers holding other currencies.
China’s gross domestic product grew 4.9% in July-September, beating analysts’ forecasts, while consumption and industrial activity in September suggested policy measures are helping bolster the economy’s tentative recovery.
Copper, other base metals rise
“The base metals complex responded positively to the data; however, gains were muted, and we expect to see mean-reverting strategies at play in the coming months,” Sucden Financial said in a report.
LME zinc was down 0.6% to $2,421 a ton, tin fell 0.7% to $25,375, lead eased 0.6% to $2,089, while aluminium was up 0.2% at $2,186 a tonne.
SHFE aluminium edged up 0.7% to 19,010 yuan a ton, nickel was down 0.6% at 149,750 yuan, tin gained 0.05% to 217,890 yuan, while zinc was down 0.2% to 21,075 yuan, and lead was 0.2% higher at 16,405 yuan.
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