Copper dips as stronger dollar offsets impact of report on China's stockpiling plans

Copper prices in London fell on Friday, as a stronger dollar overshadowed the positive sentiment following a media report that said China planned to expand its strategic reserves of key industrial metals.

The National Food and Strategic Reserves Administration, which manages official commodities stockpiles, made price inquiries and bidding for the metals, including cobalt, copper, nickel and lithium, Bloomberg News reported, without details on volumes or timing.

Benchmark three-month copper HG1! on the London Metals Exchange (LME) was down 0.9% to $9,853 a metric ton, as of 0707 GMT.

"The strategic buying news doesn't have much impact on metals prices today, due to lack of details," a trader said.

The dollar firmed, bolstered by the U.S. Federal Reserve's indication that there is no immediate intent to reduce interest rates.

The dollar index DXY was up 0.3% to 104.06 after climbing 0.36% on Thursday.

A stronger U.S. currency makes dollar-priced metals more expensive for buyers using other currencies.

U.S. President Donald Trump utilized emergency powers on Thursday to increase domestic production of critical minerals such as lithium and nickel, to counter China's sector dominance and meet anticipated demand for electric vehicle batteries.

LME aluminium ALI1! fell 0.7% to $2,641.5 a ton, lead LEAD1! was down 0.8% to $2,040, zinc ZNC1! lost 0.4% to $2,907, tin FTIN1! dropped 2.1% to $34,610, nickel NICKEL1! fell 0.8% to $16,150.

SHFE copper HG1! lost 0.9% to 80,610 yuan ($11,252.64) a ton, SHFE aluminium ALI1! fell 0.7% to 20,700 yuan, zinc ZNC1! was unchanged at 23,770 yuan, lead LEAD1! dropped 1.4% to 17,430 yuan and nickel NICKEL1! lost 0.9% to 129,190 yuan. Tin FTIN1! slid 1.0% to 276,150 yuan.

($1 = 7.2463 Chinese yuan renminbi)