The cost of non-ferrous metals declined amid the strengthening of the US dollar
Prices for non-ferrous metals started the week lower due to the strengthening of the US dollar and speculation that weak demand this year will have a more significant impact on the market than supply constraints. As of 02:52 GMT, three-month copper futures on the LME decreased by 0.3%, to $8,457 per metric ton. Last week, copper prices fell by 0.7%.
The most actively traded March copper contracts on the SHFE dropped in price by 0.4%, to 68,530 yuan ($9,522.02) per ton.
Copper, often seen as an economic barometer, is becoming cheaper following statements made last week by the Federal Reserve System (Fed) of the US. The central bank dispelled market participants' hopes that interest rate cuts would begin in March.
Additionally, traders tempered their expectations regarding the extent of the Fed's monetary policy easing this year after strong data indicated the resilience of the US economy. In light of this, the dollar rose against other major currencies to an eight-week high on Monday.
The strengthening of the US dollar makes metals more expensive for holders of other currencies.
According to a recent survey of analysts conducted by Reuters, non-ferrous metals are expected to experience lackluster performance this year, as weak demand offsets the bullish pressure of supply.