Copper slips on firmer dollar, supported by supply worries

Business Recorder reported that the price of copper slipped on Wednesday, with the three-month London Metal Exchange benchmark falling 0.1% to $14,405.50 per metric tonne by 0950 GMT. A firmer US dollar weighed on the metal, since a stronger currency makes dollar-priced industrial metals costlier for buyers using other currencies. Losses stayed modest, however, as steady demand and worries about possible mine disruptions kept support in place.

Copper has climbed 16% this year on the LME, a rise the report attributes mainly to large shipments heading to the United States before possible tariffs on refined metal, leaving other markets tight. Inventories in LME-registered warehouses have fallen 36% since early June, while stocks tied to Shanghai Futures Exchange storage have dropped 79% over the same stretch. The SHFE was closed for China's National Day holidays and is due to reopen on Thursday.

Supply concerns also rose as staff at the Centinela copper site in Chile prepared to walk out after negotiations involving two labour groups and Antofagasta Minerals stalled. Aluminium slipped 0.5% to $3,118 a tonne, as stronger dollar gains outweighed supply risks tied to Middle East tensions. Among other metals, zinc dropped 0.4% to $3,753 per tonne, lead added 0.4% to $1,880, nickel rose 0.5% to $15,755 and tin gained 0.2% to $54,300.