Copper futures settled marginally lower on Monday as the US dollar strengthened overseas amid ongoing US-Iran tensions and disruptions in the Strait of Hormuz, which drove oil prices higher and revived fears of inflation and interest rate hikes. A stronger dollar makes dollar-denominated commodities such as copper more expensive for holders of other currencies. However, the longer-term outlook remained supported by supply disruptions in top producer Chile, lower production from major miners, and steady demand growth from China.
Copper futures for September delivery fell $0.001 to settle at $6.3410 a pound on the Comex metals division of New York Mercantile Exchange. Copper on the London Metal Exchange was up by 0.71% at $13,622 a ton.