BEIJING- Copper prices opened higher this week on Monday, supported by resilient demand in China amid signs of a stabilizing economy, although rising inventories and dollar strength capped gains.
Three-month copper on the London Metal Exchange was up 0.4 percent to $7,982 per metric ton by 0141 GMT, while the most-traded November copper contract on the Shanghai Futures Exchange dipped 0.1 percent to 66,340 yuan ($9,081.58) per ton.
Trade data last Friday showed a slump in exports and imports was gradually easing.
September copper imports by the world’s top consumer hit an intra-year high, although still lower than last year’s volume.
However, copper stocks on the LME and SHFE warehouses recorded weekly rises last week, creating headwinds for the metal used in power, construction and transportation sectors.
Also weighing on the market was the dollar movement.
The dollar was on the front foot on Monday in cautious trade as tensions in the Middle East escalated, while investors awaited a speech by Federal Reserve Chair Jerome Powell later this week for further clues on the US central bank’s rate outlook.
A strong dollar typically pressures down commodity prices as it makes it more expensive to buy the greenback-priced commodity.
LME aluminum little changed at $2,199.50 a metric ton, tin moved 1.4 percent up to $25,425, zinc climbed 0.4 percent to $2,454.50, lead rose 0.7 percent to $2,055.50, and nickel was up 1.4 percent to $18,810. – Reuters
