London, August 27: Copper futures on the London Metal Exchange (LME) fell on Wednesday, snapping a four-day winning streak, largely due to a stronger dollar, rising LME inventories, and concerns about the demand outlook in top metals consumer China.

As of 1605 GMT on Wednesday, three-month LME copper futures fell 0.85% to $9,757 per ton. The contract had hit a two-week high of $9,862 in the previous session.

LME copper has risen 1.55% so far this month and 11.11% year-to-date. Wednesday's closing price has rebounded $1,652, or more than 20 percentage points, from the more than 16-month low of $8,105 hit in early April.

ING commodities strategist Eva Mant said Chinese demand is showing signs of slowing, with economic headwinds such as tariffs and a sluggish real estate sector impacting the Chinese economy.

China released mixed economic data this week. Industrial profits fell for the third consecutive month in July, but the decline was smaller than in May and June, and manufacturing profits grew 6.8%. Alastair Munro, senior base metals strategist at Marex, said the improvement in manufacturing profits is likely a result of China's capacity reduction efforts over the past two months, including in the metals sector. Copper prices have performed well against the backdrop of a weakening macroeconomic environment and a rising dollar.

Furthermore, US President Trump's dismissal of Federal Reserve Governor Lisa Cook has reignited investor concerns about the Fed's independence.

A stronger dollar on Wednesday made dollar-denominated metals more expensive for buyers using other currencies.

Comex copper futures fell 1.4% to $4.40 per pound on Wednesday, bringing the discount to LME copper futures to $62 per ton.

Rising copper inventories in LME and COMEX exchange-registered warehouses also weakened market sentiment. LME copper inventories rose by 1,100 tons to 156,100 tons on Wednesday, a 72% surge since the end of June. COMEX inventories have nearly tripled so far this year.

Other metals closed lower: LME aluminum futures fell 1.5% to $2,599.50 per ton; nickel futures fell 1.1% to $15,120 per ton; and zinc futures fell 1.9% to $2,760 per ton after hitting a three-week low.

LME lead futures fell 0.2% to $1,984 per ton; while tin futures rose 1% to $34,555 per ton, the highest price in a month.

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