Dollar's strength pushes copper to two-week low

Copper prices fell on Monday to a two-week low as dollar gained ground against most major rivals, with markets expecting Chinese demand to taper off as the real estate market faces struggles.

Copper prices at the London Metals Exchange fell 0.75% to $8418 a tonne, with January 24 lows at $8412. 

A series of policies launched by China last year to boost the real estate market failed to prop up the sector. 

Chinese banks are putting off providing new credits for the sector after the liquidation of the Evergrande corporation. 

Traders believe copper will continue to be under pressure until China’s real estate  sector recoups.

Dollar’s recent strength following the US payrolls report also weighed on copper futures as they become costlier to holders of other currencies. 

Traders also said that copper inventories doubled at the Shanghai Exchange to 68777, a sign of weak demand.

Simultaneously, zinc prices plumbed seven-week lows at $2418 due to weak Chinese demand, falling 1.2% today. 

Aluminum prices fell 0.9% to $2213 a tonne, while lead shed 0.6% to $2131, as tin fell 0.2% to $25,035, while nickel shed 0.6% to $16,135. 

Otherwise, the dollar index rose 0.6% to 104.5 as of 15:38 GMT, with a session-high at 104.5, and a low at 103.9.

Copper futures due in March fell 1.2% to $3.77 a pound as of 15:30 GMT.