Copper falls on firmer dollar ahead of central bank meetings
BEIJING — Copper prices fell on Monday from near six-month highs, as the U.S. dollar firmed and caution prevailed ahead of major central bank meetings that could provide further clues on prospects of global economic growth and metals demand.
Three-month copper on the London Metal Exchange slid 1.1% to $8,448.5 a tonne by 0124 GMT, while the most-traded January copper contract on the Shanghai Futures Exchange was down 1% to 66,140 yuan ($9,508.47) a tonne.
The dollar firmed after data showed producer prices in the United States rose more than expected last month, pointing to persistent inflationary pressures and stoking fears the Federal Reserve would need to keep interest rates higher for longer.
A stronger dollar makes the greenback-priced metal more expensive for other currency holders.
Copper prices touched their highest since June on Friday, as investors expected China’s easing of its COVID-19 restrictions would boost global economic growth and metals demand.
Investors are bracing for a half-percentage-point rate hike from the Fed this week, a step down from its recent series of three-quarter-point increases.
In addition, the European Central Bank and the Bank of England are also set to announce interest rate hikes.
Global miner Anglo American Plc on Friday cut its copper production estimate for 2023 because of deteriorating ore grades at its Chilean mines, and trimmed the higher end of its output target for 2022.
LME aluminum lost 1.4% at $2,446 a tonne, zinc slipped 0.8% to $3,215, lead was down 1.2% at $2,174 and tin dropped 2% to $23,805.
SHFE aluminum fell 1.9% to 18,860 yuan a tonne, zinc dipped 0.2% to 24,790 yuan, nickel was down 1.1% at 218,190 yuan, and tin shed 3.4% at 190,980 yuan.
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($1 = 6.9559 yuan) (Reporting by Siyi Liu and Dominique Patton; Editing by Subhranshu Sahu)
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