NEW DELHI: Copper prices edged lower on Friday as the US dollar firmed on the back of higher Treasury yields, although hopes of more stimulus in top consumer China limited the fall.
Three-month copper on the London Metal Exchange (LME) slipped 0.2% to $7,977 per metric ton by 0346 GMT. The most-traded November copper contract on the Shanghai Futures Exchange was down 0.03% to 66,470 yuan ($9,084.94) a ton.
The dollar was within a hair’s breadth of the closely-watched 150 yen level, buoyed by a surge in the US 10-year Treasury yield which briefly reached 5% for the first time since 2007 in the previous session.
A stronger dollar makes commodities priced in the US currency costlier for buyers using other currencies.
“The recent weakness in prices is raising concerns in the mining industry,” ANZ Research said in a report.
Copper gains on China optimism
“This is despite the strong outlook for the metal amid the surge in investment in clean energy technology sectors.” LME aluminium was down 0.1% at $2,182 a ton, lead slipped 0.2% to $2,092.50, while zinc edged up 0.1% to $2,418 and tin was up 0.5% at $25,335.
SHFE aluminium edged lower 0.1% to 18,960 yuan a ton, nickel was down 0.2% to 150,000 yuan, tin was 0.7% lower at 216,820 yuan, while zinc was down 0.8% to 20,945 yuan, and lead rose 0.6% to 16,520 yuan.
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