Copper sinks on dollar, China tightening fears
Copper prices dropped Friday under the weight of a stronger dollar, mixed economic data in the United States and additional monetary narrowing moves in China, which triggered transformed worries about near-term command prospects in the world’s top metals consumer.
Benchmark copper for March delivery HGH0 on the New York Mercantile Exchange’s COMEX division shed 5.10 cents, or 1.6 percent, to finish at $3.0825 per lb, after dealing in a session range between $3.0340 and $3.14.
On the London Metal Exchange (LME), copper for three-month delivery MCU3 ended at $6,810 a tonne, down $130 from Thursday, when the metal used in power and construction hit a two-week high of $6,970 a tonne.
In a bid to cool the country’s quickly rising economy and combat price increases, China’s central bank surprised markets by raising banks’ reserve obligation 50 basis points effective on Feb. 25, the second such increase this year.
