Prices of London copper fell on Monday as the dollar held firm, while weaker-than-expected demand from top metals consumer China weighed on investor sentiment.
Three-month copper on the LME was down 0.2% at $9,624.00 a tonne, as of 0740 GMT, while the most-traded January copper contract on the Shanghai Futures Exchange climbed 0.9% to 70,180 yuan ($10,997.76) a tonne, tracking Friday's gains in London.
The dollar index hovered near its highest level in more than 16 months, making greenback-priced commodities more expensive to buyers holding other currencies.
Fourth-quarter demand in China is weaker than market expectation, said He Tianyu, a CRU copper analyst, adding the increase in copper premiums in the Chinese domestic market has also raised concerns over costs from producers.
Copper premiums in China spiked to a record high last week as an administrative issue over value-added tax (VAT) on imports exacerbated tight supply.
The auto and machinery sector will likely provide strong support for China demand next year, though demand growth could be relatively low from the construction sector, He said.
Prices were also pressured by rising inventories in LME warehouses, which stood at 62,575 tonnes - their highest since Oct. 11.
"Investors kept a close eye on the elections in Chile this weekend with copper accounting for half of Chile's exports last year and 11% of its GDP," commodities broker Anna Stablum of Marex Spectron said in a note.
Fundamentals
LME aluminium was up 0.6% to $2,695.50 a tonne, nickel edged 0.1% up to $20,065 a tonne, zinc rose 0.2% to $3,245.50 a tonne and lead rose 0.7% to $2,230 a tonne.
ShFE aluminium gained 1.8% to 19,095 yuan a tonne, nickel climbed 2.7% to 148,530 yuan a tonne and zinc rose 1.4% to 22,930 yuan a tonne.
China's central bank on Friday said it would keep its prudent monetary policy "flexible and targeted" and strike a balance between economic growth and risk controls.