Copper extends loss as dollar strengthens

Nickel fundamentals are showing signs of weakness these couple of weeks, traders said.

SEATTLE (Scrap Monster): Copper extended fall on Tuesday, pressured by a stronger dollar as policymakers at the U.S. Federal Reserve remained divided on a December interest rate cut, with the delayed September payrolls data in focus.

The most-traded copper contract on the Shanghai Futures Exchange dropped 85,900 yuan ($12,084) per metric ton by 0243 GMT.

The benchmark three-month copper on the London Metal Exchange shed 0.37% to $10,739 a ton.

The dollar benefited from receding expectations that the Fed would cut rates next month. A stronger dollar makes commodities transacted in the greenback more expensive to investors using other currencies.

The official September jobs data, which was delayed by the shutdown of the U.S. government, is due to be released on Thursday.

'With the data calendar still distorted, investors are increasingly sensitive to labour-market signals as they reassess the near-term path of the Federal Reserve,' analysts at Sucden Financial said in a note.

Among other SHFE base metals, nickel led the selloff on Tuesday, tumbling 1.79% to 114,700 yuan a ton.

The metal, used in batteries and stainless steel, declined as much as 1.81% to 114,680 yuan a ton, touching its lowest since July 2022.

The three-month nickel on the London Metal Exchange dropped 0.58% to $14,565 a ton, touching the lowest since April.

Nickel fundamentals are showing signs of weakness these couple of weeks, traders said.

Nickel pig iron (SMM-NIC-NPI15), a key raw material for stainless steel, was trading just above 900 yuan per nickel unit, down from above 950 yuan in mid-October.

Battery feedstock nickel sulphate (SMM-NIC-SOIBG) also showed signs of weakening entering November.

LME nickel stocks (MNISTX-TOTAL) rose to 252,090 tons, as of November 17, while corresponding nickel stocks (SNI-TOTAL_D) in SHFE sheds rose to 35,826 tons on Friday.

Shanghai aluminium declined 1.01%, zinc dropped 0.56%, lead lost 0.75%, and tin dipped 0.19%.

Among other LME metals, aluminium dropped 0.75%, zinc declined 0.45%, tin was down 0.34%, and lead was down just 0.05%.

 Courtesy: www.tradingview.com