London copper steady on stronger US dollar

MELBOURNE — London copper steadied on Monday, not far from a two-week low hit in the previous session on persistent headwinds from a stronger dollar. London Metal Exchange copper traded little changed at $6,833 a ton by 0515 GMT, finding its feet after more than 2% losses in the previous session. Prices on Friday sank to their lowest since Oct. 11 at $6,782.50.

Shanghai Futures Exchange copper was down by 1.30% at 53,670 yuan ($8,077) a ton.

The dollar edged away from last week’s three-month highs on Monday, while the euro nursed losses after the European Central Bank and unrest in Spain’s Catalonia led it to post its worst week this year. A stronger dollar makes metals less affordable for buyers paying with other currencies.

China’s plan to upgrade its industrial sector with “smart” factories, green manufacturing and transport is expected to increase annual copper demand by 232,000 tons by 2025, an industry group said on Friday.

Investors continued to file into copper. Hedge funds and money managers raised their net long positions in copper by 1,026 contracts to 108,739 contracts, a six-week high, in the week to Oct. 24, US Commodity Futures Trading Commission data showed on Friday.

As the froth comes off China’s home prices, there are increasing signs that some property developers, particularly those with a heavy debt load, are becoming less aggressive. Property and construction is a major demand driver for metals.

Aluminum maker Norsk Hydro may restart a mothballed Norwegian production line as global metals markets tighten following a Chinese clampdown on pollution, the company’s chief executive told Reuters.

China said it was “strongly dissatisfied” with the US decision to impose anti- dumping duties ranging from 97% to 162% on Chinese aluminum foil, urging Washington to correct its “mistaken methods.”

China’s iron ore futures dropped more than 2% to a fourmonth low on Monday and were on track for a second straight monthly drop as concerns grow about waning demand due to Beijing’s winter smog crackdown on steel mills.

Goldman Sachs upped its nickel forecasts to $ 12,500 in three months and $12,000 in six months, from $ 9,000 for both forecasts, citing a “supportive macroeconomic backdrop and market tightening driven by Chinese nickel pig iron cuts in Shandong province during the winter heating season.” —