Copper slumped to a more than two-week low on Friday and was heading for its worst week since April on tech sector fears while US jobs data added to doubts over a potential cut to US interest rates in December.
Benchmark three-month copper on the London Metal Exchange was down 1.2 per cent at $10,613.50 a metric tonne by 1021 GMT and on course for a weekly fall of 2.2 per cent, the biggest since the week ended April 4.
The metal widely used in power, construction and manufacturing earlier touched a low of $10,607.50, its weakest since November 5.
“I think the main panic in markets relates to the selloff in crypto,” said Dan Smith at Commodity Market Analytics. “Bitcoin is falling like a stone and down about a third from the recent high. The danger is that this feeds into a death spiral for anybody that is overexposed.” Bitcoin hit a seven-month low on Friday. U.S. September jobs data, which had been delayed by the government shutdown, on Thursday showed stronger than expected growth in new hiring but a rise in the jobless rate to its highest in nearly four years.
“The fog around US statistics has meant that the Fed is unlikely to cut rates in December,” Smith said, referring to the US central bank. “This is resulting in some US strength, which is bearish for metal markets.”
A stronger dollar makes dollar-denominated metals more expensive for holders of other currencies.
The LME complex was down across the board. Aluminium fell 1.2 per cent to $2,780.50 a tonne, tin slipped 1 per cent to $36,655, zinc lost 2 per cent to $2,956.50, notching a one-month low, and lead fell by 1 per cent to $1,990 after hitting a similar milestone.
Nickel was down 1.1 per cent at $14,335 a tonne after sliding to its lowest in seven months. The metal used to make stainless steel and rechargeable batteries is down 3.5 per cent this week and also heading for its worst week since April.
