Copper extended fall on Tuesday, pressured by a stronger dollar as policymakers at the U.S. Federal Reserve remained divided on a December interest rate cut, with the delayed September payrolls data in focus.

The most-traded copper contract on the Shanghai Futures Exchange HG1! closed daytime trading down 0.88% at 85,650 per metric ton.

The benchmark three-month copper on the London Metal Exchange HG1! lost 0.97% to $10,674 a ton by 0708 GMT.

The dollar DXY benefited from receding expectations that the Fed would cut rates next month. A stronger dollar makes commodities transacted in the greenback more expensive to investors using other currencies.

The official September jobs data, which was delayed by the shutdown of the U.S. government, is due to be released on Thursday.

“With the data calendar still distorted, investors are increasingly sensitive to labour-market signals as they reassess the near-term path of the Federal Reserve,” analysts at Sucden Financial said in a note.

Among other SHFE base metals, nickel NICKEL1! led the selloff on Tuesday and closed daytime trading down 1.67% at 114,840 yuan a ton.

The metal, used in batteries and stainless steel, declined as much as 1.81% earlier to 114,680 yuan a ton, touching its lowest since July 2022.

The three-month nickel on the London Metal Exchange NICKEL1! dropped 0.85% to $14,525 a ton. The London nickel tested its lowest level since April.

Nickel fundamentals are showing signs of weakness these couple of weeks, traders said.

Nickel pig iron (SMM-NIC-NPI15), a key raw material for stainless steel, was trading just above 900 yuan per nickel unit, down from above 950 yuan in mid-October.

Battery feedstock nickel sulphate (SMM-NIC-SOIBG) also showed signs of weakening entering November.

LME nickel stocks (MNISTX-TOTAL) rose to 252,090 tons, as of November 17, while corresponding nickel stocks (SNI-TOTAL_D) in SHFE sheds rose to 35,826 tons on Friday.
Shanghai aluminium ALI1! declined 1.22%, zinc ZNC1! dropped 0.58%, lead LEAD1! lost 1.12%, and tin FTIN1! dipped 0.36%.

Among other LME metals, aluminium ALI1! dropped 0.92%, zinc ZNC1! declined 0.80%, tin FTIN1! tumbled 0.88%, and lead LEAD1! was down 0.34%.
Source: Reuters