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METALS-Copper at three-month low on oil surge, strong dollar
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METALS-Copper at three-month low on oil surge, strong dollar
Mar 19, 2026 12:48 AM

(Updates prices by Asian market close)

March 19 (Reuters) - Copper slid to its lowest point in

three months on Thursday in a cross-complex selloff of base

metals, as oil prices spiked following Iranian attacks in the

Middle East, stoking inflation fears and stronger dollar amid

weakening rate-cut expectation.

The most-active copper contract on the Shanghai

Futures Exchange lost 4.50% to close at 94,430 yuan

($13,686.30) a metric ton, after declining as much as 5.09% to

93,850 yuan, the lowest since December 19and the biggest

percentage loss since February 2.

And the benchmark three-month copper on the London

Metal Exchange slid1.84% to $12,168 a ton, after dropping as

much as 2.92% to $12,034, the lowest since December 24.

"Copper came under more pronounced pressure, moving in

strong negative correlation with oil and the dollar," analysts

at Sucden Financial said, noting the broader base metal complex

is vulnerable as inflation fears due to rising energy prices and

dollar strength persists.

Brent futures surged above $110 a barrel, following

Iran's attack on several oil plants across Saudi Arabia, the

United Arab Emirates and Qatar in retaliation for strikes on its

own energy infrastructure in South Pars and Asaluyeh.

Rising oil prices fuel inflation concerns, bolstering

expectations of tighter monetary policy and weighing on

growth-linked metals such as copper.

Fed Chair Jerome Powell on Wednesday addressed rising energy

prices, saying it would "push up overall inflation" but noted

that "the scope and duration of the potential effects on the

economy" was too soon to know in his speech after the U.S.

central bank's widely-expected decision to keep interest rate

unchanged.

The U.S. dollar strengthened on Wednesday, Pressuring

commodities denominated by the greenback by making them less

affordable for investors using other currencies.

Copper also came under pressure from mounting stock levels.

Copper stocks in LME warehouses continued to rise

after hitting the highest since 2019, totalling 334,100 tons as

of Tuesday.

Elsewhere on SHFE, aluminium declined 2.64%, zinc

lost 3.16%, lead dropped 1.59%, nickel

tumbled 2.94% and tin slid 6.61%.

Among other LME metals, aluminium dropped 1.43%,

zinc lost 1.13%, lead slid 0.94%, nickel

tumbled 2.78% and tin plunged 3.69%.

($1 = 6.8996 Chinese yuan)

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