Copper price down, hit by strong dollar, rising inventories

Copper cathodes. Image by Glencore.

The copper price fell on Thursday as the dollar hit a seven-week high and inventories in warehouses registered with the London Metal Exchange (LME) continued to rise.

Copper for delivery in July was down 1.73% on the Comex market in New York, touching $3.68 per pound ($8,096 per tonne). 

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“Copper has given back some of yesterday’s strong gains led by short-covering, as the dollar continues higher, with the dollar index trading at the highest since March,” said Ole Hansen, head of commodity strategy at Saxo Bank.

Chinese data showed April industrial output and retail sales grew slower than expected, reinforcing concerns of a spillover into the wider global economy.

Further pressuring prices, on-warrant copper stocks in LME registered warehouses climbed to a six-month peak of 90,300 tonnes after arrivals of 3,900 tonnes.

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(With files from Reuters)