LONDON- Copper prices dipped on Friday as the dollar resumed gains on worries about high US interest rates and after mixed data on China’s economy, the world’s top metals consumer.
Three-month copper on the London Metal Exchange (LME) fell0.5 percent to $7,952 per metric ton by 1605 GMT.
On a weekly basis, the contract eased 1.2 percent , the second straight week of decline, and has given up about 4 percent over the past two weeks.
Chinese data showed exports declined less than expected in September, while total social financing (TSF) climbed to 4.12 trillion yuan ($563.91 billion) from 3.12 trillion in August, higher than analysts had expected.
TSF includes off-balance sheet forms of financing outside the conventional bank lending system.
“The Chinese export data are still negative, but compared to the prior month, it’s a significant step in the right direction,” said Nitesh Shah, commodity strategist at WisdomTree.
“Certainly, the government has not offered any big bazooka in terms of stimulus, so expectations should be moderated in terms of how much China can bounce back.”
The dollar index extended gains from the previous session when US consumer prices data reinforced expectations that the Federal Reserve may have to keep interest rates higher for longer.
“Higher-for-longer interest rate narrative and consequent slower economic growth concerns are keeping industrial metals prices on a weaker footing. There could be more downside for the sector,” said analyst Soni Kumari at ANZ.
Chinese real estate market concerns and rising LME copper stockpiles and mine supply from South America dented sentiment, she added. – Reuters
