Copper, zinc fall as strong dollar weighs on industrial metals

SINGAPORE: Copper and zinc fell on Wednesday, as a strong dollar and fears of interest rates staying higher for longer weighed on the wider industrial metals complex. Benchmark three-month copper on the London Metal Exchange was down 0.99% at $14,133.5 a metric ton by 0300 GMT. The most-traded copper contract on the Shanghai Futures Exchange fell 1.65% to 107,710 yuan ($16,022.55) a ton. The dollar held firm after overnight gains, as renewed hostilities in the Middle East pushed oil prices higher and revived inflation concerns. A stronger greenback weighs on dollar-denominated commodities by making them more expensive for buyers using other currencies. Data showing US factory activity slowed in August, amid elevated input prices, also weighed on demand expectations. Copper and zinc have been supported by concerns about supply tightness over recent months, with both recording their best month since January in August. Available copper stocks in LME-registered warehouses edged higher on Tuesday, while zinc cancelled warrants, meaning material marked for withdrawal from LME warehouses, hit 30,875 tons, the highest in more than a year. LME zinc fell 1.43% on Wednesday, while SHFE zinc w