Copper dips 0.25% on LME as dollar rises and oil prices firm
Three-month LME copper was down 0.25% at $14,379 a tonne by 0300 GMT, pressured by a firmer US dollar and higher oil prices.
By Solomon Cefai SINGAPORE, Oct 7 (Reuters) — Copper prices receded slightly on Wednesday, weighed by rising oil prices and gains in the US dollar. 25% at $14,379 a metric ton by 0300 GMT. 05. A stronger dollar can weigh on industrial metals by making them more expensive for buyers using other currencies.
Copper was also pressured by higher oil prices, which rose as the market weighed supply constraints from a storm heading for US oil-producing regions and attacks by Yemen's Iran-backed Houthis on Saudi Arabia. Rising oil prices have stoked inflationary pressures and concerns that policymakers would be forced to hike interest rates. Higher interest rates can weigh on demand for growth-dependent commodities like copper by dampening economic activity. Meanwhile, Asian stock softened on Wednesday, led by declines in AI-related stocks, paring gains from a rally earlier in the week that had supported copper prices.
Growth in the AI and defence sectors will boost copper demand by 50% by 2040, consultancy S&P Global has said. Later on Wednesday, the market will look to the Federal Reserve's release of minutes of its September policy meeting for signs of potential further rate hikes. 25%, was the main bright spot in the LME industrial metals complex. It was boosted by supply risks tied to the heightened Middle East tensions.
Still, prices for the metal used in construction, packaging and transport have fallen by more than 17% since hitting a four-year high in June, weighed by easing worries about supply from the Gulf region and expectations of new production capacity in Indonesia. 09%. The Shanghai Futures Exchange was closed, and will reopen when the country returns from holiday on Thursday. com)