WSJ: Copper Prices Rise Slightly as Dollar Weakens
Concerns about Chinese economy continue to weigh on metals
LONDON—Copper prices rose slightly from multiyear lows in London on Tuesday, as a weaker dollar offered some respite for the industrial metal.
The London Metal Exchange’s three-month copper contract was up 0.3% at $4,502 a metric ton, having been just $12 shy of a new six-year low when it hit an intraday low of $4,452 a ton.
Dollar softness usually has an impact on copper prices. The metal is priced in dollars and becomes less expensive for holders of non-dollar currencies when the greenback weakens.
“The U.S. dollar has been the principal driver [of prices this morning],” said John Meyer, an analyst at broke SP Angel.
Nickel hit another 12½-year low during trading before recovering to trade higher.
The LME’s three-month nickel contract was up 1.1% at $8,390 a ton, having fallen to its lowest level since June 2003.
“The fall in metal prices was overdone. That’s why a mild recovery has happened,” said Gnanasekar Thiagarajan, director of Commtrendz Risk Management. “But the underlying sentiment is still weak because the market is concerned about China’s demand.”
Among other base metals, aluminum was up 0.9% at $1,448.50 a ton, zinc was up 1.4% at $1,567 a ton, lead was up 1.1% at $1,593 a ton and tin was down 0.7% at $14,250 a ton.
