Copper price holds loss as equity rout, strong dollar weigh on metals

Copper held losses after four days of declines as a stronger dollar puts pressure on commodities and a global equities rout undermines broader market sentiment.

The wiring metal traded near $10,650 at ton on the London Metal Exchange, following the longest losing streak since July in a pullback from last month’s rally to a record. Most other industrial metals crept lower as concerns over valuations dragged stocks down for a second day.

Copper prices reached an all-time high last week on optimism that a US-China trade deal would boost demand, while a spate of disruptions at major mines around the world brought home the delicate supply balance for a metal that’s key to the world’s growing electrification. The rally cooled as a US dollar near its strongest level since May makes commodities priced in the greenback more expensive for buyers in other currencies.

Chinese copper consumers were seen buying the dip in the domestic market. Copper is widely used in wires, cables and batteries for its conductivity.

Meanwhile, a port crucial for Africa-China copper trade flows reopened after a week-long shutdown, easing some supply concerns.

Copper was little changed at $10,653.50 a ton as of 1:18 p.m. in London, after dropping by almost 5% over the prior four sessions. Zinc dropped 0.8%.

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