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Copper strikes three-month low to draw in consumers purchasing

Copper prices continued to succumb to their 5th successive session on Thursday to their threemonth low on arbitrage trading between London and Shanghai, bring in consumers to purchase the dip.

Three-month copper on the London Metal Exchange (LME). dipped to $8,867 per metric load, its least expensive given that Aug. 12. It last traded 1.9% lower at $8,874 by 1133 GMT.

It came under pressure with more traders making the most of. price gaps in between the LME and its Chinese peer, the Shanghai. Futures Exchange (ShFE).

Rather some short-LME-buy-ShFE activity was seen these couple of. days to lower the LME costs, senior metals strategist. Alastair Munro with Marex stated.

But the downside could be limited as he saw a return of. physical copper buyers to LME after consecutive days of. decreases.

That consists of customers from South America and Europe, he. said.

On the macro front, metals rates remain pushed by a strong. U.S. dollar, presently at its one-year high. It makes the. greenback-priced metals more expensive for other currency. holders.

Supporting the dollar is also a growing expectation for. less rates of interest cuts from the Federal Reserve next year as. inflation stayed sticky.

Keeping interest rate high will support dollar buying.

More cues on the future course of policy rates will feature. the manufacturer rate index (PPI) and remarks from Fed Chair Jerome. Powell, due later in the day.

For other metals, zinc fell 3% to $2,888.5 as steel market. in China stayed weak to depress the galvanising demand.

LME aluminium fell 1% to $2,508 a ton, nickel. dropped 0.5% to $15,655, lead lost 1.9% to. $ 1,971 and tin fell 1.9% to $29,075.

(source: Reuters)