London copper stumbles on US banking crisis and firmer dollar

LONDON — Copper prices faltered on Tuesday, unsettled by worries about the knock-on impact of a US banking crisis, a stronger dollar and a slow recovery of demand in top metals consumer China.

Three-month copper on the London Metal Exchange (LME) shed 1.2% to $8,823.50 a ton by 1700 GMT after rising by 0.7% on Monday.

US Comex copper futures dropped 1.3% to $4.00 per pound.

LME copper has given up about 7% since touching a sevenmonth peak of $9,550.50 a ton in January, mainly on concern over demand in China and climbing global interest rates.

A stronger dollar index also weighed on the metals market. A stronger dollar makes commodities priced in the US currency more expensive for buyers using other currencies.

The dollar edged higher on Tuesday as traders set aside a fairly strong reading of consumer price data and tried to gauge whether the US Federal Reserve will raise interest rates next week after the collapse of two banks sparked widespread market unease.

Uncertainty about the pace of recovery of metals demand in China was also undermining prices.

The Yangshan copper premium rose to $25 a ton on Monday for its highest since March 1, indicating improving demand for imported copper into China, albeit still far below the $150 a ton premium hit last October.

LME nickel gave up earlier gains and slipped 0.5% to $23,005 a ton after LME on-warrant inventories — material not earmarked for removal — fell to a one-year low of 38,610 tons.

LME aluminum gained 0.6% to $2,348.50 a ton and lead added 0.4% to $2,090.50, while zinc dropped 1.1% to $2,914 and tin fell by 1.2% to $22,925. —