Copper prices fall for fourth straight day as dollar strengthens

LONDON — Copper prices fell on Tuesday as rising coronavirus cases strengthened the dollar and cast doubt on a speedy rebound of some economies, while plentiful supply of the metal also sapped its appeal.

Three-month copper on the London Metal Exchange shed 0.3% to $9,352 per ton by 1651 GMT after falling as low as $9,236. This was the metal’s fourth straight session of declines.

“The market is in a wait and see approach and is lacking a major driver so the currency is leading metals trading,” said Gianclaudio Torlizzi, partner at consultancy T-Commodity.

The ruling Communist Party in top metals consumer China is hosting its centenary celebration this week and could announce measures that could boost domestic demand and consumption, Torlizzi said.

Rising coronavirus infections boosted the dollar, making assets priced in the greenback, such as copper less attractive to global buyers.

The stronger dollar has dragged prices for copper down 13% since a record of $10,747.50 per ton in May, after the US Federal Reserve shocked the market with a hawkish tilt.

Meanwhile, aluminum prices were boosted by supply concerns in Russia and declining stocks, while lead hit its highest since July 2018.

Russia is preparing new export taxes for steel products, nickel, aluminum and copper.

Three-month aluminum on the London Metal Exchange rose 1.9% to $2,537 a ton, while lead rose 3% to $2,299.

On-warrant copper stocks in LME-registered warehouses dipped 1,350 tons to 197,025 tons but are still nearly 160% higher this year.

LME copper remained in contango, indicating plentiful supply. The discount of LME cash copper to the three-month contract was at about $22.30 a ton compared with a premium of $30 in April.

Shortages of tin are expected to climb in the coming years as demand rises for electronics and to drive the green revolution, while investment in mines has been lagging, the International Tin Association (ITA) said.

Zinc climbed 1.6% to $2,952.50 a ton, tin edged up 0.7% to $31,355 and nickel was up 0.4% to $18,365. —