Copper, industrial metals fall as stronger dollar weighs

Copper prices declined on Wednesday due to a stronger US dollar, which also affected other industrial metals. The benchmark three-month copper on the London Metal Exchange decreased by 0.66% to $14,651 per metric ton. The most-traded copper contract on the Shanghai Futures Exchange slipped 0.23% to 110,960 yuan ($16,550.57) per ton.

The US dollar gained strength overnight, influenced by volatile oil prices and geopolitical uncertainties. A stronger dollar can negatively impact dollar-denominated commodities like copper by making them pricier for buyers using different currencies, thus reducing support from Chinese buyers. The Yangshan premium, an indicator of China's interest in imported copper, fell to $117 per ton on Tuesday but remained 62.5% higher than at the start of the month.

Chinese demand had been bolstered by purchases preceding smelter shutdowns for public holidays in China, which are from September 25 to 27 and October 1 to 7. Copper had been bolstered by robust imports to the US ahead of a potential tariff on refined metal, although this support waned after reports suggested US officials were concerned tariffs could increase manufacturing costs.

Analysts from Chinese broker Jinrui Futures noted that US weekly imports had receded. In other metals, SHFE nickel rose by 1.16%, while LME aluminum, zinc, lead, nickel, and tin all experienced declines of 0.63%, 0.68%, 0.52%, 0.43%, and 0.38% respectively.