London copper prices fell on Monday, weighed down by a robust dollar and higher warehouse inventories and as US policymakers debated whether to withdraw economic support faster than expected.
Three-month copper on the LME was down 0.5 percent at $9,603 a ton, while the most-traded January copper contract on the Shanghai Futures Exchange gained 1.2 percent to 70,320 yuan ($11,014.52) a ton, tracking Friday’s gains in London.
A stronger dollar makes greenback-priced commodities more expensive to buyers holding other currencies.
An early rate hike by the US Federal Reserve could reduce liquidity in financial markets and slow recovery in the world’s biggest economy. Copper is often used as a gauge of global economic health.
On-warrant inventories in LME warehouses stood at 62,575 tons, their highest since Oct. 11.
Meanwhile, fresh coronavirus-led restrictions in Europe weighed on market sentiment.
