By Ese Erheriene and Ira Iosebashvili 
 

Copper futures fell to their lowest levels in more than six years Monday, weighed down by a stronger dollar and expectations of lackluster demand.

Copper for December delivery, the most actively traded contract, closed down 1.9% at $2.0215 a pound on the Comex division of the New York Mercantile Exchange, the lowest level since May 2009. Prices for the industrial metal, which is heavily used in manufacturing and construction, have lost more than 28% this year and are down almost 57% since their 2011 highs.

Among the reasons for its most recent troubles has been a stronger dollar. The WSJ Dollar Index, which gauges the dollar against a basket of 16 currencies, was recently up 0.3% at 90.56. Copper is priced in dollars, and it becomes more expensive for other currency holders to buy as the greenback strengthens.

Additionally, general risk aversion on Monday saw investors jettison some of their holdings in copper, which is considered a so-called risk asset. "The rout in the metals continues, and it looks like deleveraging is going on at a large scale as those involved in the market reduce their exposure," said William Adams, head of research at Fastmarkets, in a note.

Meanwhile, nickel hit another 12 1/2-year low on Monday, weighed down by weakness in copper, the stronger dollar, oversupply and lackluster demand. The LME's three-month nickel contract closed down 4.9% at $8,300 a metric ton.

Looking ahead, metal prices are expected to continue heading lower. "China, emerging market and European demand worries, a strengthening U.S. dollar, along with investors that see a potential corporate debt crisis, should continue to keep the base metal complex subdued into early 2016," analysts at TD Securities said in a note to clients.

 
Settlements: Nov $2.0195, down 3.45 cents; Range $2.0045-$2.0200 
             Dec $2.0215, down 3.80 cents; Range $2.0015-$2.0545 
 

Write to Ese Erheriene at ese.erheriene@wsj.com and Ira Iosebashvili at Ira.Iosebashvili@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

November 23, 2015 16:24 ET (21:24 GMT)