By Zandi Shabalala
LONDON, Sept 30 (Reuters) – Copper prices fell to a one-week low on Thursday as concerns about the timing and pace of the U.S. Federal Reserve’s monetary easing plan kept the dollar near one-year highs.
Benchmark copper CMCU3 on the London Metal Exchange (LME) shed 1.3% to $9,036 per tonne by 1054 GMT.
The metal, used as a gauge of the health of the global economy, was headed for its first quarterly drop in six.
Talk of policy tightening in the United States has boosted the dollar .DXY, making greenback-priced metals more expensive for holders of other currencies.
“The dollar is up on some safe-haven buying with all the macro concerns around and the Fed tapering which could be announced at the next meeting,” said Robin Bhar, an independent commodities analyst.
“There are a lot of worries out there about economic growth, supply chains and power rationing in China.”
INVENTORIES: Falling inventories have underpinned copper prices and helped to contain losses.
Stocks in warehouses monitored by the Shanghai Futures Exchange fell to their lowest since May 2009, down 2.5% to 43,525 tonnes from last Friday. CU-STX-SGH
In warehouses registered with the LME, on-warrant stocks were at their lowest since June at 124,200 tonnes.MCUSTX-TOTAL
PREMIUM: The premium of cash LME copper over the three month contract climbed to its highest since Aug. 23 at $19 a tonne, indicating near-term shortages of material in the LME system. CMCU0-3
POWER: Concerns about power curbs and shortages have hobbled prices on fears over demand destruction due to potential supply shocks.
CHINA DATA: Factory activity in top metals consumer China unexpectedly shrank in September as high raw material prices and power cuts pressured manufacturers in the world’s second-largest economy.
PERU: Miner MMG Ltd 1208.HK said it had recommenced the transportation of shipments after roadblocks in the Chumbivilcas province in Peru, which had disrupted operations in recent weeks, were temporarily removed.
OTHER METALS: LME aluminium CMAL3 was down 1.6% to $2,865 a tonne, zinc CMZN3 shed 1.2% to $3,017, lead CMPB3 lost 3% to $2,077, tin CMSN3 was up 0.1% to $35,500 while nickel CMNI3 was down 0.9% to $18,185.
Performance of base metals in Q3https://tmsnrt.rs/3mePoNO
(Reporting by Zandi Shabalala, additional reporting by Mai Nguyen in Hanoi; additional reporting by Tom Daly and Bernadette Baum)
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