Copper prices kicked off the last quarter of 2023 with a fall on Monday, extending a declining trend in the last two quarters, as a firm dollar and higher inventories weighed on prices.
Three-month copper on the London Metal Exchange fell 0.1 percent to $8,261.50 per metric ton, nickel rose 0.1 percent to $18,715, lead advanced 0.3 percent to $2,177.50 and zinc fell 0.3 percent to $2,641, while both aluminum and tin were flat.
The dollar was firm as the prospect of higher-for-longer US interest rates provided solid support, making greenback-priced metals more expensive to holders of other currencies.
The Chinese market is shut for public holidays until Oct. 8, so demand was tepid, while supply pressure is climbing.
Inventories of copper in LME-registered warehouses have surged 141 percent in the past three months to 167,825 tons, the highest since May last year.
Copper output in Chile, the world’s largest producer of the red metal, rose 2.7 percent year-on-year in August to 434,206 tons.
Nickel inventories continue to climb in LME warehouses and were last at 42,228 tons, the highest since April 3. Tin and lead stocks have also been rising in LME warehouses.
Meanwhile, the Singapore Exchange launched on Monday its first ammonia swap and futures contracts aimed at meeting hedging needs from the power sector as interest in the energy- transition fuel grows.
The SGX Argus Ammonia Middle East free on board (FOB) and the East Asia Swap/Futures cost and freight (C&F) contracts start from October and they can be traded for up to 24 consecutive contract months, William Prajogo, SGX’s commodities director told Reuters. – Reuters
