{
  "id": 5032447,
  "title": "Copper, zinc fall as strong dollar weighs on industrial metals",
  "url": "https://urgent.news/2026/09/02/copper-zinc-fall-as-strong-dollar-weighs-on-industrial-metals",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-02T06:39:39.000Z",
  "source": {
    "name": "Business Recorder",
    "slug": "business-recorder",
    "url": "https://www.brecorder.com/news/40437565/copper-zinc-fall-as-strong-dollar-weighs-on-industrial-metals"
  },
  "original_language": "en",
  "account": "Copper and zinc prices dropped on Wednesday as a strong dollar and concerns over higher interest rates impacted the industrial metals sector. The London Metal Exchange's three-month copper benchmark fell 0.99% to $14,133.5 per metric ton, while the Shanghai Futures Exchange's most-traded copper contract fell 1.65% to 107,710 yuan ($16,022.55) per ton. The dollar remained strong, following overnight gains, as Middle East hostilities escalated, driving oil prices up and reigniting inflation worries. A more potent greenback makes dollar-denominated commodities pricier for buyers using other currencies, affecting demand expectations for these metals. Slowdowns in US factory activity, driven by higher input prices, also contributed to reduced demand forecasts. Copper and zinc had been buoyed by worries about supply shortages over the past months, both experiencing their highest monthly gains since January in August. LME-registered copper stocks rose on Tuesday, while zinc warrant cancellations reached 30,875 tons, the highest level in over a year. LME zinc declined 1.43% on Wednesday, while SHFE zinc slipped 1.8%. Tight supply concerns were evident in LME zinc's cash-to-three-month spread, which remained backwardated at $139.35 per ton, a significant drop from last Thursday's $231.75. Rising expectations of rate hikes from the US Federal Reserve also hurt base metals, with a 68% probability of a September rate increase, up from 40% a week earlier, according to the CME's Fedwatch tool. Among LME metals, aluminum fell 0.49%, lead declined 0.42%, nickel slipped 0.27%, and tin dropped 0.81%. Among SHFE metals, aluminum decreased 0.19%, lead rose 0.15%, nickel fell 1.05%, and tin dropped 2.39%.",
  "summary": "SINGAPORE: Copper and zinc fell on Wednesday , as a strong dollar and fears of interest rates staying higher for longer weighed on the wider industrial metals complex. Benchmark three-month copper on the London Metal Exchange was down 0.99% at $14,133.5 a metric ton by 0300 GMT. The most-traded copper contract on the Shanghai Futures Exchange fell 1.65% to 107,710 yuan ($16,022.55) a ton. The…",
  "key_points": [
    "Strong dollar weighs on industrial metals prices",
    "Copper and zinc drop 0.99% and 1.65% respectively",
    "Supply concerns and US rate hike expectations hurt base metals"
  ],
  "editors_take": "A strong dollar, fueled by rising inflation worries and prospects of US interest rate hikes, is pressuring industrial metals like copper and zinc by making them more expensive for buyers using other currencies.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}