London copper prices fell on Monday as risk sentiment was dampened by the prospects of higher-for-longer interest rates in the United States, while buying slowed ahead of a long public holiday in top consumer China.
Three-month copper on the London Metal Exchange fell 0.3 percent to $8,198 per metric ton, while the most-traded November copper contract on the Shanghai Futures Exchange was almost flat at 67,790 yuan ($9,282.11) per metric ton.
Central banks for the world’s biggest economies, including the US Federal Reserve, have indicated they will keep interest rates as high as needed to tame inflation.
A high interest rate environment could temper economic growth and eventually dampen metals demand. It could also mean a stronger US dollar, which makes greenback-priced metals more expensive to holders of other currencies.
Markets in China, which accounts for around half of copper consumption globally, will be shut for public holidays during Sept. 29-Oct. 6.
Copper stockpiles in LME-registered warehouses rose to the highest since May 2022 at 162,900 tons on Wednesday, latest data showed, putting further pressure on prices.
LME aluminum declined 0.6 percent to $2,227.50 a ton, nickel fell 0.3 percent to $19,370, zinc dropped 1.3 percent to $2,529.50, lead decreased 0.5 percent to $2,203.50, and tin rose 0.3 percent to $26,330. – Reuters
