Copper fluctuated in New York and London, on course for the first weekly drop in six weeks, in line with movement by the dollar. The U.S. Dollar Index, a six-currency gauge of the greenback’s strength, was last little changed after rising as much as 0.4 percent and sliding as much as 0.3 percent. Copper for December delivery on the Comex in New York swung between a climb of 0.9 percent and a slide of 0.8 percent and was last ahead 0.3 percent. “Near-term commodities price action seem to be dominated by dollar moves,” said Daniel Major, an analyst at RBS Global Banking & Markets in London. December-delivery copper rose 1.15 cents to $3.793 a pound at 8:28 a.m. on the Comex. The most-active contract has shed 1.2 percent this week. Copper for delivery in three months climbed 0.3 percent to $8,330 a metric ton on the London Metal Exchange. Prices gained 12 percent over the prior five weeks on the LME as the dollar slid and on Oct. 19 reached $8,492 a ton, the highest intraday level since July 7, 2008. The dollar index is on course for the first weekly climb in six weeks amid speculation Group of 20 officials will agree to refrain from weakening currencies. G-20 finance ministers and central bankers began talks in South Korea today. Fed Policy The U.S. currency fell in the previous five weeks on speculation Federal Reserve officials will signal that further credit-easing measures are needed to support growth when they meet next on Nov. 2-3. Business confidence in Germany, the world’s third-largest copper user after the U.S. and China, unexpectedly climbed in October to a 3 1/2-year high. The Munich-based Ifo institute said its business climate index rose to 107.6, the highest level since May 2007, compared with the median estimate of 38 economists surveyed by Bloomberg News for a drop to 106.5. LME copper stockpiles contracted for a 35th week in a row, matching a streak that ended in August 2004. They last climbed in the week ended Feb. 19 and shrank 0.6 percent this week. Today inventories fell 0.3 percent to 368,825 tons, the lowest since Oct. 23, exchange figures showed. Copper stockpiles monitored by the Shanghai Futures Exchange rose for a third week to 106,275 tons, the highest level in almost two months, the bourse said today. Supply Shortfall Orders to draw copper from LME inventories, or canceled warrants, were unchanged today at 28,475 tons. They jumped 23 percent this week, the third weekly advance in a row. Demand for copper outpaced supply by 356,000 tons in the year’s first seven months, the International Copper Study Group said in a report on its website yesterday. That was more than double the year-earlier 164,000-ton shortfall, it said. Zinc for three-month delivery on the LME climbed 1.7 percent to $2,516 a ton after reaching $2,525, the highest intraday price since April 16. Suspended output at Shenzhen Zhongjin Lingnan Nonfemet Co.’s Shaoguan smelter in China will have little effect on local zinc and lead prices because supplies are ample, said Beijing Antaike Information Development Co. “The halt in output will support prices in the short term, as disruptions tend to,” Feng Juncong, chief zinc and lead analyst at Antaike, said by phone. Still, “if you take it in the context of China’s total production, the impact is not big.” Lead, Aluminum Lead gained 1.2 percent to $2,515 a ton after reaching $2,519, the highest price since Jan. 14. Aluminum advanced 0.6 percent to $2,364 a ton. China will sell 96,000 tons of aluminum ingots from state stockpiles on Nov. 1-2, the state reserve authority under the National Development and Reform Commission said on its website. “China has already proved in the past that they are very good traders,” Commerzbank’s Briesemann said. “We might be very close to peak aluminum prices.” Tin was little changed at $26,460 a ton. Prices reached a record $27,338.50 on Oct. 14. The metal has jumped 55 percent this year, leading advances on the exchange, after production was disrupted in Indonesia and the Democratic Republic of the Congo. Nickel fell 0.5 percent to $23,425 a ton. To contact the reporter on the story: Anna Stablum in London at astablum@bloomberg.net. To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net.

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