Copper crawls higher on softer dollar, but investors wary about demand
XLB•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. LME copper remained down 2% since the end of the previous week.
1. Copper edges higher
Benchmark three-month copper rose 0.3% to $14,289 a metric ton by 1000 GMT on Friday, but was down 2% since the end of the previous week. A softer dollar and supply issues supported prices, while high oil prices and signs of industrial weakness in China weighed on sentiment.
2. Supply concerns persist
LME copper has gained 16% over six months, as inventories shifted to the United States amid the prospect 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 contract offer, raising the prospect of a strike.
