Strong Dollar Continues to Hinder Copper

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Copper prices saw their steepest Comex drop in two weeks on Thursday, as a stronger dollar trounced better-than-expected US economic growth.

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Copper for December delivery, the most actively traded contract, closed down 1.4%, or 4.2 cents, at $3.0625 a pound on the Comex division of the New York Mercantile Exchange. It was the biggest percentage decline for copper prices since Oct. 15.

The US Dollar Index was up 0.2% at 86.142, a three-week high. A stronger greenback weighs on copper and other precious metals, which are priced in dollars and become more expensive to foreign buyers when the buck strengthens.

On Thursday, October 30, the day’s biggest mover was the Japanese copper cash price, which saw a 1.0% increase to JPY 772,000 ($7,091) per metric ton. The price of US copper producer grade 110 rose 0.3% to $3.82 per pound. At $3.82, the price of US copper producer grade 122 finished the market day up 0.3% per pound. The price of US copper producer grade 102 increased 0.2% to $4.01 per pound.

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Chinese copper closed mixed yesterday. Chinese copper bar gained 0.4% to finish at CNY 49,300 ($8,027) per metric ton. The Chinese copper cash price gained 0.4% to finish at CNY 49,500 ($8,060) per metric ton. The price of Chinese copper wire continues hovering around CNY 50,395 ($8,205) per metric ton for the fifth day in a row. The price of Chinese bright copper scrap saw little movement at CNY 44,300 ($7,213) per metric ton.

Following two days of rising prices, the copper 3-month price dropped 0.1% on the LME to $6,785 per metric ton. The primary copper cash price ended a two-day climb, settling at $6,854 per metric ton on the LME.

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