Copper eases from near 5-month high as Fed warning lifts dollar
Copper prices fell from their highest in nearly five months on Monday after a top U.S. central banker reaffirmed commitments on monetary tightening, helping the dollar to steady following last week’s sharp sell-off.
Three-month copper on the London Metal Exchange (LME) was down 0.4% at $8,453 a tonne by 0543 GMT, aluminum fell 1.5% to $2,435.50 a tonne, lead shed 1% to $2,140 a tonne and tin declined 1.9% to $20,920 a tonne.
LME copper briefly hit its highest since June 23 at $8,600 a tonne earlier in the session, buoyed by China easing some of its COVID-19 rules and initial hopes that the Federal Reserve would scale back its hefty rate hikes after data showed a modest miss on inflation.
But Fed Governor Christopher Waller said on Sunday markets should pay attention to the “endpoint” of rate increases, which is likely still “a ways off.”
“The global economic growth is still facing downward pressure, and it is still judged that this price increase is a strong rebound in a declining trend, not a reversal,” Jinrui Futures said in a note.
The most-traded December copper contract on the Shanghai Futures Exchange fell 0.8% to 67,040 yuan ($9,494.81) a tonne, slipping from its highest since June 16 hit in the previous session.
The dollar was steady, edging up from a near three-month low, making greenback-priced commodities more expensive to holders of other currencies.
SHFE nickel dropped 1.7% to 200,320 yuan a tonne and tin shed 0.6% to 176,120 yuan a tonne, while aluminum rose 0.3% to 18,785 yuan a tonne and zinc advanced 0.4% to 23,890 yuan a tonne.
Offering some support to metal prices on Monday was China’s decision to extend more support to property developers to shore up the struggling real estate sector, which consumes a vast amount of metals.
“The policies are strong,” Jinrui Futures said, adding that the support level for SHFE copper was around 64,000-65,000 yuan a tonne.
For the top stories in metals and other news, click or ($1 = 7.0607 yuan) (Reporting by Mai Nguyen in Hanoi; Editing by Subhranshu Sahu)
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