Copper Dips on Strong Dollar, Increasing Supply

Copper dropped 0.83 percent or $55.49 on Tuesday to trade at $6,686 per tonne, according to Reuters. Pressure on copper prices came from a strong dollar and an increasing global supply of the metal, as well as from disappointing manufacturing data from top consumer China, which indicates weakening demand for the metal.

“There’s not a whole lot of positive near-term indicators to get the copper market to rebound,” Nomura metals and mining analyst Patrick Jones told Reuters. “We’re getting to the point now where we have meaningful new supply starting to hit the market, the import arbitrage between Shanghai and London is out of money and the Chinese property market is still worrisome.”

Copper for December delivery on New York’s Comex fell 1.1 percent or $0.01 Tuesday to trade at$3.0225 per pound, The Wall Street Journal reported.