Copper keeps sliding as dollar makes gains

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Friday, October 14, 2016

For a second straight day copper couldn't shake off its negative momentum and closed lower in London on Friday, pushed down by a stronger US dollar and China's weak economic data.

Spot copper closed down 1.72% to US$4,672.50/t (US$2.119/lb) on the London Metal Exchange from Thursday's US$4,754.50/t, according to Chile's state copper commission Cochilco.

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The Wall Street Journal Dollar Index, which measures the greenback against a basket of 16 other currencies, was up 0.32% to 88.40 mid-day Friday.

"The prices of most industrial commodities fell this week, as the US dollar continued to appreciate," said UK-based research firm Capital Economics in a note.

"Doubts about whether OPEC's plans for an output quota will lead to any meaningful cuts to supply weighed on oil prices, while copper was also hit by a combination of rising Shanghai stocks and falling price premiums. China's copper imports also fell in year-on-year terms last month."

Aluminum closed 0.2% lower on Friday to US$1,685/t, while lead was down 1.1% to US$1,991.50/t and nickel rose 0.2% to US$10,435/t. Zinc was 0.1% higher at US$2,232.50/t, tin was down 0.6% at US$19,575/t, and molybdenum was flat at US$15,500/t.