Copper crawls higher on softer dollar, but investors wary about demand
CPER•Copper rose 0.3% to $14,289 a metric ton on Friday, supported by a weaker dollar and supply concerns, while worries about demand limited gains. The price was down 2% since the end of the previous week.
1. Copper edges higher
Three-month copper on the London Metal Exchange was up 0.3% at $14,289 a metric ton by 1000 GMT on Friday. A broker said turnover was light and the broader tone cautious, citing high energy costs linked to the US-Iran conflict and signs of industrial weakness in China.
2. Supply concerns persist
LME copper has gained 16% over six months, largely as inventories shifted to the United States in anticipation of potential tariffs, creating shortages elsewhere. Shanghai Futures Exchange warehouse stocks fell 79% over four months to 38,744 tons, their lowest since January 2024. Chilean copper production fell 12.8% year on year in August, and supervisors at the Escondida mine rejected a collective contract offer, raising the prospect of a strike.
3. Payrolls in focus
Investors were awaiting US September payrolls data for clues on the economy and whether the Federal Reserve would raise rates again. Aluminum, zinc, lead, nickel and tin also edged higher on Friday.
