METALS-Copper falls as dollar nears one-year high

(Update prices, add quotes)

October 5 (Reuters) – Copper prices in London fell on Tuesday as the dollar strengthened, amid lukewarm trading as markets for major Chinese consumers were closed for a public holiday.

Three-month copper on the London Metal Exchange was down 0.9% to $ 9,167 a tonne at 6:16 a.m. GMT, aluminum was down 0.3% to $ 2,908 a tonne, nickel was down 0, 2% to $ 17,890 per tonne and zinc rose 0.2% to $ 3,022 per tonne.

The US dollar moved closer to a one-year high against its major peers, making greenback-priced metals more expensive for holders of other currencies, ahead of a key payroll report at the end of the week that could strengthen the arguments in favor of the Federal Reserve. a declining recovery from next month.

“Without the crude (oil) story, we should have drifted lower on a strong US dollar and more dominoes falling in China. That’s a lower drift with higher peaks when China eases the problems of Evergrande uncertainty, ”said a Singapore-based metals trader.

Crude oil prices have increased due to supply issues. The trader said higher crude oil prices could deter some metal manufacturers from producing because of the higher costs.

The debt problems of real estate giant China Evergrande triggered risk aversion for fear of a global financial crisis and potentially hurt demand for metals in the construction sector.

China is on vacation from October 1-7.

FUNDAMENTALS

* The main Chilean miners saw their copper production drop in August, announced Monday the copper commission of the Chilean state Cochilco, impacted in part by a strike in a mine belonging to the state miner Codelco.

* Global copper smelting activity rebounded in September as rising processing costs prompted many smelters to ramp up production, satellite monitoring data showed Monday.

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