Copper hits 10-day low as oil rally, strong dollar weigh

Copper prices plummeted to their lowest level in 10 days on Monday, driven by factors including an uptick in oil prices, the United States' rejection of Iran's peace deal, and a robust US dollar. The London Metal Exchange's benchmark three-month copper slid 1.06% to $14,467.50 per metric ton. Previously, it had dropped to $14,440, the lowest since September 18.

The Shanghai Futures Exchange's primary copper contract declined 0.72% to 109,420 yuan ($16,296.08) per ton. It had previously slipped as much as 0.91%, the steepest drop since September 15, to 109,210 yuan, the lowest since September 18.

Brent crude surged nearly 2% on Monday, following US President Donald Trump's rejection of Iran's proposal to reopen the Strait of Hormuz and end the conflict. This kept concerns over potential disruptions to oil flows in the critical waterway. A stronger US dollar made metals priced in dollars costlier for holders of other currencies.

In China, industrial profit growth decelerated to 4.2% year-on-year in August, down from 11.2% in July, according to official data released on Monday. The pace of growth eased from 17.6% in the first eight months of the year.

Downstream users are anticipated to restock prior to China's seven-day National Day holiday this week. However, elevated spot premiums and high copper prices might dampen demand, according to Jinrui Futures. Domestic copper premiums stood at 1,315 yuan per ton as of Thursday, just below a weekly peak of 1,375 yuan. Other LME metals also experienced declines, with aluminum down 0.98%, zinc dropping 1.10%, lead falling 0.62%, nickel slipping 0.42%, and tin losing 1.72%.

On the Shanghai Futures Exchange, aluminum slipped 0.68%, zinc dropped 0.97%, lead lost 0.77%, nickel declined 1.18%, and tin shed 1.19%.