Copper and Zinc Prices Slump Amid Strong Dollar and Rising Rate Expectations

Copper and zinc prices have fallen due to a strong dollar and concerns that interest rates may remain high for longer. Benchmark three-month copper on the London Metal Exchange (LME) dropped by 0.99% to $14,133.5 a metric ton as of 0300 GMT on Wednesday.

The most-traded copper contract on the Shanghai Futures Exchange fell by 1.65% to 107,710 yuan ($16,022.55) a ton. The strong dollar has made commodities more expensive for buyers using other currencies.

Data showing US factory activity slowing in August due to elevated input prices also weighed on demand expectations. Copper and zinc had been supported by concerns about supply tightness over recent months, but available copper stocks in LME-registered warehouses edged higher on Tuesday.