Prices of most nonferrous metals fell on Thursday, weighed down by a firm dollar that makes greenback-priced metals more expensive to holders of other currencies, with copper and lead also pressured by higher inventories.
Three-month copper on the London Metal Exchange (LME) fell 0.6 percent to $8,299.50 per metric ton. The most-traded October copper contract on the Shanghai Futures Exchange eased 0.2 percent to 68,650 yuan ($9,403.59) per ton.
The dollar index rose to its strongest since March 9 after the US Federal Reserve stiffened a hawkish monetary policy stance that its officials increasingly believe can succeed in lowering inflation without wrecking the economy or leading to large job losses.
Also suppressing copper prices were inventories in LME warehouses rising to 155,700 tons, the highest level since May 2022.
The LME cash copper contract was trading at a $64-a-ton discount to the three-month contract the biggest discount since May 23, indicating abundant near-term supply.
Tightness in lead eased on the LME, with the cash-to-three trading at a $1 premium, down from $63 on Sept. 5, as lead inventories in LME warehouses leaped to 73,875 tons, the highest since July 2021.
LME aluminum declined 0.5 percent to $2,244.50 a ton, nickel dropped 0.9 percent to $19,420, zinc decreased 1.4 percent to $2,519, lead shed 0.5 percent to $2,202.50, and tin lost 0.3 percent to $26,065.
