Copper prices fell to their lowest in more than a week as a strong dollar and weakening yuan made metals expensive to users in top metals consumer China.
Three-month copper on the London Metal Exchange (LME) fell as much as 0.3 percent to $8,350 per metric ton, the lowest since Aug. 25.
The most-traded October copper contract on the Shanghai Futures Exchange (SHFE) dropped as much as 0.8 percent to 68,950 yuan ($9,416.44) a ton, the lowest since Aug. 29.
The dollar index hovered near its highest in nearly six months, after the US services sector unexpectedly gained steam in August.
China’s yuan fell to a 10-month low, despite exports and imports falling somewhat less than expected in the world’s second-biggest economy.
However, imports and exports in China still fell and Beijing still risks missing its economic growth target this year, hurting risk sentiment across financial assets.
Yangshan copper premium fell from its highest since December last year on Tuesday at $61.50, indicating easing demand to import copper into China.
SHFE zinc jumped as much as 0.9 percent to its highest since April 19. LME zinc was almost unchanged at $2,463.50 a ton.
