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 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 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 fell 0.7% to $2,641.5 a ton, lead was down 0.8% to $2,040, zinc lost 0.4% to $2,907, tin dropped 2.1% to $34,610, nickel fell 0.8% to $16,150.

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