Copper prices ease on firm dollar, weak Chinese property data
London copper prices eased on Monday, as a firmer dollar buoyed by expectations of a U.S. rate hike and further signs of weakness in the Chinese property market weighed on sentiment.
The dollar held near a 16-month high, making greenback-priced metals more expensive for holders of other currencies, as traders awaited for fresh cues on a U.S. Federal Reserve interest rate hike on the back of red-hot inflation.
Three-month copper on the London Metal Exchange edged down 0.1% to $9,698.50 a tonne by 0734 GMT, but losses were capped by low inventories in ShFE and LME warehouses CU-STX-SGHMCUSTX-TOTAL.
The most-traded December copper contract on the Shanghai Futures Exchange edged up 0.1% at 70,830 yuan ($11,100.49) a tonne.
“The strength in U.S. dollar is indeed catching up to base metals,” a Singapore-based trader said.
The Chinese property industry, which consumes a vast amount of base metals, posted poor performance last month amid deeper contractions in construction starts and investment by developers.
However, the pressure from property sector is likely to smooth over on hopes that China’s central bank will lend money for banks to roll over the debts of developers, the trader added.
- Japan and United States agreed to start discussions to solve the issue of additional U.S. tariffs on steel and aluminium imports from Japan, the Japanese industry ministry said.
- China’s average daily aluminium output for October fell to its lowest level in over a year as smelters faced continued restrictions due to power shortages, but monthly production rose month-on-month, ending a run of five straight monthly declines.
- LME aluminium fell 0.9% to $2,676 a tonne, nickel shed 1.2% to $19,745 a tonne, ShFE aluminium dropped 1.3% to 19,240 yuan a tonne, ShFE lead decreased 1.9% to 15,260 yuan a tonne, and ShFE tin lost 2.1% to 281,940 yuan a tonne.
Source: Reuters (Reporting by Mai Nguyen in Hanoi; Editing by Rashmi Aich and Sherry Jacob-Phillips)