Copper prices drop on stronger dollar, logjam ease
Copper prices fell on Wednesday, pressured by stronger dollar and signs that logjam at ports in China eased.
Benchmark copper futures on the London Metal Exchange was down by 0.20% to $9,542.75/tonne. Copper spot price dropped by 0.37% to $4.33 per pound.
“Base metals fell as the stronger USD weighed on investor appetite. Copper saw some support amid signs that supply bottlenecks are easing,” ANZ Research said in a note on Wednesday.
US dollar index inched up by 0.01%. The rising dollar makes the metal priced to the greenback more expensive for buyers holding other currencies.
Bloomberg reported on Tuesday citing data from IHS Markit that ships with capacity to carry about 370,000 tonnes of semi-processed concentrates from Chile and Peru are waiting to be unloaded.
Shipments were down 13% in October, but still way above year-ago levels and represents 30-40% of all monthly deliveries to China from the top two mining nations, it added.
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Demand from China's property sector
Tradingeconomics reported that concern about demand from China’s property sector has also knocked the price of copper which is used in construction material, from its two weeks high.
New and resale home prices fell in October amid deeper contractions in construction starts and investment by developers, the economic-data provider reported.