Copper is heading for its third weekly decline
Copper is heading for its third weekly decline today, having come under pressure from the stronger dollar.
Three-month copper on the London Metal Exchange shed 0.7 per cent to 4,580 per tonne, following a 0.7 per cent loss in the previous session.
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Copper has shed around nine per cent so far this month, its deepest monthly drop in half a year, also ending the rally it enjoyed at the start of this year.
"It's possible we'll see fresh 2016 lows. Copper got a bit ahead of itself in April and I don't think the longs have been washed out just yet, we've also seen profit-taking across other markets," Daniel Hynes, an analyst at ANZ, said.
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"Still, the backdrop has improved for demand over the past month given China's housing and construction sector is showing signs of improvement. We're approaching levels that have seen strong support in the past that may limit the downside for now."
Copper miner Antofagasta chairman, Jean-Paul Luksic, recently warned prices will remain low for the next two to three years. Metals prices have come under pressure as miners increased production, just as global demand started to fall.