New York, September 12: Copper futures on the Chicago Mercantile Exchange (COMEX) fell on Tuesday, and the dollar exchange rate rose, putting pressure on copper prices.
As of the close, copper futures fell by 1.15 cents to 1.85 cents, with the most actively traded December 2023 copper futures falling by 1.5 cents or 0.39% to close at $3.792/lb.
December copper futures traded in a trading range of $3.7745 to $3.8135.
Copper has fallen on 10 of the past 13 trading days.
The dollar rose ahead of key U.S. consumer inflation data on Wednesday, making copper more expensive for buyers holding other currencies.
The ICE U.S. Dollar Index closed at 104.69 points, up 0.1% from the previous trading day. The dollar is up 1.1% so far this month and 2.1% so far this year.
The recent COMEX copper futures contract has fallen 0.54% so far this month and 1.41% so far this year. The closing price on Tuesday was 4.78% higher than the same period last year, but it was still 23.88% lower than the historical peak hit on March 4, 2022.
Copper fell 14.6% in 2022 as global economic growth prospects are worrying. High inflation has prompted European and American central banks to actively raise interest rates to curb inflation, exacerbating the risk of economic recession. By comparison, copper in 2020 and 2021 has recorded gains of 25% for two consecutive years. The green transformation of the global economy and electrification have helped boost additional demand for this metal widely used in the power and construction industries, while copper mines are facing Disruptions such as underinvestment and production disruptions.
On Tuesday, the Shanghai Futures Exchange's October 2023 copper contract closed up 540 yuan at 69,330 yuan per ton. November bonded copper futures on the Shanghai International Energy Trading Center (INE) rose 570 yuan to 61,610 yuan per ton.
On Tuesday, the trading volume of COMEX copper futures was 49,756 lots, compared with 74,022 lots on the previous trading day; the open volume was 196,698 lots, compared with 200,440 lots on the previous trading day.
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