Copper prices steadied on Monday, after earlier touching their lowest level in almost 3 months, as the dollar pulled back from an earlier 4-year high against a basket of currencies.
The dollar dipped but was still near multi-year highs against the yen, euro and a basket of currencies. After a 3-month rally, the dollar index has gained more than 7% this year.
A buoyant dollar puts pressure on commodities priced in the US currency, making them more expensive for buyers outside of the US.
The primary copper cash price held steady on Monday on the LME, remaining around $6,770 per metric ton. The copper 3-month price remained essentially flat on the LME at $6,721 per metric ton.
The Japanese copper cash price saw the biggest decline of the day, dropping 1.2% to close at JPY 763,000 ($6,973) per metric ton on Monday, September 29. The price of US copper producer grade 110 fell 0.8% to $3.73 per pound. The price of US copper producer grade 122 weakened by 0.8%, settling at $3.73 per pound. The price of US copper producer grade 102 saw a 0.8% decline to $3.92 per pound.
Chinese copper closed mixed yesterday. Chinese copper bar ended the day at CNY 49,150 ($7,948) per metric ton, after the 0.7% drop yesterday. The cash price of Chinese copper declined 0.7% to CNY 49,350 ($7,980) per metric ton. The price of Chinese copper wire continues hovering around CNY 50,395 ($8,149) per metric ton for the fifth day in a row. The price of Chinese bright copper scrap held steady at CNY 44,300 ($7,164) per metric ton.