Copper was stuck near two-month lows on Monday, with the dollar pushed up after comments by the Federal Reserve left the door open to a rate hike this year, while a holiday in London drained the market of direction.
The Fed is getting closer to raising interest rates again, the head of the U.S. central bank, Janet Yellen, and other policymakers said on Friday. The LME is closed for a public holiday and will reopen on Tuesday.
Global copper stockpiles outside China are expected to rise for the remainder of the year, as China's imports slow and its exports stay robust, Standard Chartered said in a note. China will need to import 290,000 tonnes of copper a month to avert a rising global surplus.
In brighter news for demand, profits earned by China's industrial firms grew at their fastest pace in four months in July, aided by a pick-up in sales and reduced costs, the statistics bureau said on Saturday. Hedge funds and money managers switched back to a net short position in COMEX copper futures and options in the week to Aug. 23, U.S. Commodity Futures Trading Commission (CFTC) data showed on Friday.