Copper climbs on relief from softer dollar, thinning stocks
XLB•Other base metals also firm
There was also backwardation, a market structure where prices for prompt delivery are higher than those for future supplies, in the aluminium CMAL0-3 and zinc CMZN0-3 spreads, with inventories of those metals also thin.
LME three-month aluminium CMAL3 nudged up 0.1% to $3,183 per ton, while zinc CMZN3 rose 0.4% to $3,582 and tin CMSN3 added 0.7% to $54,145. Lead CMPB3 and nickel CMNI3 were flat at $1,900 and $17,135, respectively.
Low stocks and China demand support the market
Dwindling inventories, supply concerns and demand from China also offered support for copper, which is widely used in power, construction and manufacturing.
LME copper stocks MCUSTX-TOTAL fell by 6,900 tons to 255,400 tons, the lowest since February, leaving the cash LME copper contract at a more than $30 a ton premium over the three-month forward CMCU0-3, indicating tight near-term supply.
In China, Shanghai Futures Exchange copper stocks CU-STX-SGH of less than 70,000 tons are the lowest since February 2024.
COMEX copper stocks HG-STX-COMEX in the U.S., stood at a record 644,465 metric tons, almost double the LME and ShFE inventories combined, as metal continues to flow to the U.S. ahead of possible import tariffs.
Copper rises on weaker dollar and tighter inventories
LONDON, July 30 (Reuters) - Copper moved higher on Thursday, supported by a weaker dollar, after the Federal Reserve said it would keep interest rates steady, and tight inventories outside the U.S.
Benchmark three-month copper CMCU3 on the London Metal Exchange was up 1.2% to $13,747.50 per metric ton as of 0932 GMT, after declining in the previous two sessions.
The dollar fell to a one-week low as markets gauged possible Fed interest rate paths after policymakers voted to keep rates unchanged on Wednesday. A cheaper dollar can boost greenback-denominated commodities by making them more affordable for buyers using other currencies.
