London copper dips on stronger dollar

Japanese Yen and U.S. dollar banknotes are seen in this illustration taken March 10, 2023. REUTERS/Dado Ruvic/Illustration

Aug 1 (Reuters) - Copper prices in London fell on Tuesday, as a firmer dollar made greenback-priced metals more expensive to holders of other currencies.

Three-month copper on the London Metal Exchange (LME) eased 0.5% to $8,788 per metric ton by 0805 GMT.

Aluminium was down 0.5% to $2,270.50, zinc rose 0.3% to $2,573 and lead advanced 0.2% to $2,153.50, and nickel rose 0.7% to $22,440.

The dollar strengthened after a survey from the Federal Reserve showed U.S. banks reported tighter credit standards and weaker loan demand during the second quarter, a sign rising interest rates are having an impact on the economy.

Copper consumption is generally limited in the off-peak season, Jinrui Futures said in a note, adding that supply was also limited and short-term prices could rise further on the back of Chinese stimulus news.

China on Monday released further policy guidelines but no concrete measures to boost its economy. Beijing and Shenzhen said over the weekend that they would implement measures to better meet homebuyers's needs, without giving details.

The most-traded September copper contract on the Shanghai Futures Exchange rose 1.6% to 70,600 yuan ($9,852.77) per metric ton, aluminium climbed 1.1% to 18,570 yuan, and zinc advanced 1.8% to 21,175 yuan.

Lead fell 0.5% to 15,895 yuan per metric ton, and nickel dropped 0.5% to 171,270 yuan.

Tin prices fell as inventories in LME warehouses leapt to 5,275 metric tons, the highest since October 2020. SHFE tin stockpiles have been hovering near their highest since 2017.

LME tin dropped as much as 3.6% to $27,595 per metric ton, its lowest since July 6, and SHFE tin was down as much as 4.2% at 224,180 yuan per metric ton, its lowest since July 5.

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($1 = 7.1655 yuan)

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