A stronger currency and increased stocks caused copper prices to decline

The price of copper decreased a little by -0.18%, ending the day at 732.1. Although encouraging signs from China, the world’s largest buyer of metals, restricted the losses, this decline was caused by a stronger currency and rising copper inventories.

The amount of copper stocks in LME-registered warehouses increased by 1,125 tonnes, reaching a total of 135,650 tonnes, the most since last October. Inventories that were on warrant also increased to 135,350 tonnes.

Copper prices were impacted by the strengthening dollar index before U.S. inflation data that would influence Federal Reserve interest rate decisions. China’s real estate sector helped copper by allowing developer Country Garden to extend bond repayments with the consent of creditors.

China’s production of copper cathodes increased more than anticipated in August, rising by 15.5% annually and 6.8% monthly, helping the country’s overall economy rise by 11.52% from January to August.

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