HANOI- Copper prices fell on Thursday in London, weighed down by a firmer dollar, but falling metal inventories and demand showing signs of improvement limited losses.
Three-month copper on the London Metal Exchange fell 0.3 percent to $9,232 per metric ton, while the most-traded September copper contract on the Shanghai Futures Exchange advanced 0.2 percent to 73,870 yuan ($10,352.61) a ton.
The dollar index edged up 0.2 percent , rebounding from its lowest in nearly eight months hit on Wednesday, as US interest rate cut hopes weighed. A firmer dollar makes greenback-priced metals more expensive to holders of other currencies.
However, the price fall in metals are limited.
“The macroeconomic backdrop is not looking as gloomy as recently feared. Fundamentals are showing signs of improvement too,” said ANZ analyst Soni Kumari, referring to possible output in for copper, aluminum, nickel and zinc.
“Inventories are retreating and contango forward curve is narrowing… suggesting a tighter market. Downstream demand is showing signs of improvement as well for copper and aluminum,” she added.
SHFE zinc climbed as much as 1.7 percent to 23,780 yuan a ton, its highest since July 18. LME zinc rose to as high as $2,870 a ton, a level unseen since July 17.
