Currency, supply woes cut Shanghai copper prices

Shanghai copper futures were driven lower as the U.S. dollar held steady near a one-month high and on further signs of a looming supply glut.

The dollar's lack of movement, stymying currency-driven arbitrage, also hit London Metal Exchange-traded three-month copper, which was down $30 at $7,915 a tonne in electronic trading.

Copper stocks held in LME warehouses have risen more than 12 percent since early May.

Beijing has ordered some factories to close for two months around the Olympics and Paralympics to improve air quality for athletes.

Shanghai October copper the most-traded contract on the Shanghai Futures Exchange dropped 0.5 percent or 320 yuan to 60,920 yuan ($8,926) a tonne.

Three-month nickel added $270 to $18,320 a tonne.

Lead failed to retrace overnight intraday gains that pushed the metal used in battery making to its highest in 10 weeks after LME data showed a 1,450-tonne stock drop.

An already tight market for traded lead was exacerbated by the closure of Australia's Magellan lead mine as owner Ivernia Inc awaits approval to restart seaborne shipments.

The mine, located about 900 km (560 miles) northeast of Perth, was set to supply about 3 percent of the world's mined lead before operations were suspended last April.

Three-month lead last fetched $2,235 a tonne, down $35 from the late kerb.

LME three-month aluminium was flat at $2,960, while three-month zinc was down $10 at $1,860 a tonne.

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