Copper Prices Slip After 10-Week Rally on Rate Hike Bets
London copper prices dipped on Monday after a 10-week rally, influenced by rising expectations of a Federal Reserve rate hike following stronger-than-expected US jobs data.
The three-month copper price on the London Metal Exchange fell 0.27% to $14,377 a metric ton by 0334 GMT, while the most-traded copper contract on the Shanghai Futures Exchange was flat at 109,110 yuan ($16,257.41) a ton.
US nonfarm payrolls increased by 162,000 in August, beating economists' expectations of a gain of 56,000, and boosting hopes for a September Fed rate increase.
The jobs data and shifting rate expectations have kept copper prices volatile, analysts at Chinese broker Galaxy Futures said. They noted that concerns over another LME short squeeze have eased, with the COMEX-LME price gap narrowing to just above $300 a ton, but warned that metal shortages could persist due to continued imports into the US.