HANOI- Copper prices fell on Tuesday, dragged down by a firmer dollar and as traders took a breather after prices hit a record high in the previous session.
Three-month copper on the London Metal Exchange (LME) eased 0.5 percent to $10,839.50 per metric ton by 0230 GMT, while the most-traded July copper contract on the Shanghai Futures Exchange (SHFE) edged down 0.1 percent at 86,650 yuan ($11,965.92) a ton.
The dollar was firmer, making greenback-priced metals more expensive to holders of other currencies.
Investors took a breather after copper had a red-hot rally to hit a record high of $11,104.50 a ton in the previous session. The LME copper contract has gained 27 percent so far this year.
The rally was triggered by short covering on the US Comex exchange that created momentum for speculators and funds to continue to pour money into the metal, betting on its increasing usage in the global green energy transition.
However, on the physical market, copper demand is not as red hot. The usual premium that Chinese consumers and traders pay to import copper has switched to zero and even below zero since mid-May, the lowest since at least 2012.
