Business

Copper price slumps, US dollar strengthens

COPPER cathodes.

TRYNESS TEMBO, Lusaka
COPPER price on the London Metal Exchange (LME) last week registered its biggest weekly lose with weakness set to extend into this week due to the strong United States (US) dollar.
Zambia’s major export earner is expected to trade at about US$4,755 per tonne.
Reuters reports that the dollar reached its highest in more than two months against a basket of currencies as encouraging data on US jobs reinforced the view that the Federal Reserve would raise interest rates around year-end.
It says a stronger dollar erodes the buying power of companies paying for commodities with other currencies.
“London copper was facing its biggest weekly fall in six weeks on Friday, with weakness set to extend into next week on a stronger dollar and concerns about fresh curbs on China’s property market, a key consumer of the metal,” Reuters reports.
Three-month copper on the LME was trading flat at US$4,755 a tonne by 02:33 GMT, after matching the two-week low of US$4,750 hit in the previous session in which it lost 0.9 percentage point.
Copper price, however, have remained above an important chart floor around US$4,730 to US$4,700 a tonne, in line with the 100- and 200-day moving averages.
Commenting on the development , INTL FC Stone an independent commodity consultant Ed Meir says , “With very little in the way of fresh news until [Friday’s] US payroll number, we suspect that metals will be buffeted by the stronger dollar and will likely continue to edge lower.”
In other metals, LME nickel was set to be the biggest loser of the week, giving up 3.4 percent, while lead, which surged 10 percent last week, retraced 2.6 percent and LME zinc also faced a weekly drop, of some two percent.

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