London copper prices slipped on Thursday as the dollar ticked higher, while signs of easing tightness in nearby supplies of the metal also weighed on the market.
Three-month copper on the London Metal Exchange fell 0.3% to $9,622 a tonne, as of 0315 GMT, while the most-traded January copper contract on the Shanghai Futures Exchange was up 0.1% at 69,800 yuan ($11,002.35) a tonne.
The dollar index inched 0.1% higher on early data hinting the Omicron coronavirus variant may not be as bad as feared. A stronger dollar makes the greenback-denominated commodity more expensive for those holding other currencies.
On-warrant LME inventories rose to 72,975 tonnes, their highest since Oct. 8. They were, however, down 69% from August high of 238,725 tonnes.
Premium for LME cash copper over the three-month contract fell to $2.30 a tonne, its lowest since Sept. 17, indicating easing nearby supply tightness.
This came as cancelled warrants of copper in LME warehouses, or metal earmarked for delivery, fell to 2,200 tonnes, the lowest since December 2009.
Fundamentals
LME aluminium was up 0.2% at $2,631 a tonne, zinc edged 0.2% higher to $3,315, nickel fell 0.4% to $20,160 a tonne. Lead was flat at $2,284.5 a tonne after jumping 4.5% on Wednesday, its best day since August 2018.
- ShFE aluminium dipped 0.1% to 18,840 yuan a tonne, zinc climbed 1.6% to 23,485 yuan a tonne, lead gained 2.5% to 15,465 yuan a tonne and tin rose 0.5% to 285,460 yuan a tonne.
China's factory-gate inflation slowed in November, driven by a government crackdown on runaway commodity prices and an easing power crunch, amid Beijing's efforts to bolster the faltering economy.
Ecuador's mining industry is threatened by legal uncertainty, the sector's guild said on Wednesday, citing a decision by the country's top court to withdraw environmental permissions for a project in a protected forest.