Copper Prices Slip Amid Stronger Dollar and Waning Chinese Demand
Copper prices have taken a hit due to a stronger US dollar and renewed concerns about global economic growth, causing demand to cool down. The three-month copper contract on the London Metal Exchange (LME) slipped by 0.4% to $14,080 a metric ton after reaching a six-month high.
The firmer dollar has made imports more expensive for non-US buyers, who pay in US currency. This comes as China's demand for imported copper appears to be waning, with the Shanghai Futures Exchange (SHFE) copper contract falling by 0.7% to 107,410 yuan a ton.
The Yangshan premium, which is an additional charge for importing copper into China, has dropped to a four-week low of $95 a ton. This suggests that Chinese buyers are less eager to import metal from overseas, even though the physical market still isn't flooded with supply.