Copper prices dropped on Thursday as a stronger dollar made greenback-priced metals more expensive for overseas buyers, while tepid data from top consumer China also weighed on demand and risk sentiment.
Three-month copper on the London Metal Exchange eased 0.1 percent to $8,249 per metric ton, while the most-traded August copper contract on the Shanghai Futures Exchange dipped 0.7 percent to 67,330 yuan ($9,291.38) per metric ton.
The dollar climbed after U.S. Federal Reserve Chairman Jerome Powell did not rule out more rate hikes at the next meeting and reiterated that most central bankers will see two rate rises this year.
In China, factory activity is expected to contract for a third straight month in June, underscoring the need for further policy stimulus to counter weak demand.
This follows data on Wednesday showing annual profit at China’s industrial firms declining in double-digit percentage rate in the first five months of this year due to softening demand.
Base metals are widely used across different economic sectors and in the manufacturing industry.
LME aluminum fell 0.1 percent to $2,171.50 per metric ton, while nickel rose 0.3 percent to $20,120, zinc advanced 0.6 percent to $2,362.50, lead edged up 0.1 percent at $2,073.50 and tin climbed 0.5 percent to $26,175.
