Lima, November 23, 2021Updated 11/23/2021 09:11 am
Copper prices fell Tuesday against a stronger dollar after Federal Reserve Chairman Jerome Powell was nominated for a second term, bolstering investor expectations of higher interest rates in the United States next year.
As of 1242 GMT, three-month copper on the London Metal Exchange (LME) was down 0.2% at $ 9,721 a tonne.
The dollar index hit a new 16-month high. A stronger dollar makes raw materials more expensive for holders of other currencies.
On-warrant copper stocks in LME-registered warehouses have risen to 62,775 tonnes compared to 23,300 tonnes a month ago. But inventories accumulate losses of 18% so far this year and are at almost historically low levels.
The scale of deliveries made by Chinese foundries has been smaller than expected due to the delay in recent months, said Alastair Munro of brokerage Marex.
“The market is still tight for stocks,” he said.