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Copper prices drop from near-four month high as dollar firms


Three-month copper on the London Metal Exchange was 0.4 per cent lower to $8,579.50 per metric ton

London copper prices slid from a near four-month high on Monday as the U.S. dollar firmed but supply concerns amid production disruption in the Cobre mine in Panama capped further losses.

Three-month copper on the London Metal Exchange was 0.4 per cent lower to $8,579.50 per metric ton by 0147 GMT. The contract hit $8,640 per metric ton last Friday, its highest since August 4.

The dollar index bounced on Monday, as geopolitical tension in the Middle East returned to focus and investor caution against a key employment report later this week.

A stronger dollar makes it more expensive to buy the greenback-priced commodity.

But supply-side disruptions in the Cobre mine in Panama owned by First Quantum Minerals sparked concerns in a market recording falling inventories.

First Quantum has suspended its current-year production outlook for the Cobre mine and has initiated international arbitration over a contested contract with the country’s government, the miner stated Friday.

Amid the supply uncertainty, global miners reached agreements with Chinese smelters for a lower copper concentrate treatment and refining charges (TC/RCs) for 2024, the first decline in three year.

The most-traded January copper contract on the Shanghai Futures Exchange added 0.8 per cent to 68,880 yuan ($9,658.15) per ton.

LME aluminium lost 0.2 per cent to $2,204 a ton, tin gained 0.6 per cent to $23,900, zinc added 0.1 per cent to $2,511, lead rose 0.2 per cent to $2,124, and nickel dropped 1.6 per cent to $16,775.

SHFE aluminium jumped 0.6 per cent to 18,665 yuan a ton, zinc added 0.8 per cent to 20,895 yuan, nickel rose 0.5 per cent to 130,050 yuan, tin rose 2.2 per cent to 200,120 yuan, while lead slipped 0.9 per cent to 15,720 yuan.

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