Copper edges up on thin stocks, eyes 10-week winning streak
XLB•Other base metals mixed
Aluminium CMAL3 slipped 0.6% to $3,292 but was still on track to end the week 1.4% higher. The cash-to-three-month aluminium spread CMAL0-3 has flipped into a slight backwardation, signalling tightening near-term availability.
"We remain neutral to constructive near-term given low visible inventories and a still-tight physical market," Citi said in a note on aluminium, adding that the balance would become more challenging over the next six–12 months as ex-China supply growth accelerates.
Zinc CMZN3 added 0.4% to $3,928, with the three-month spread CMZN0-3 still in steep backwardation at $152 a ton.
Lead CMPB3 was up 0.5% at $1,913 after orders to withdraw 8,450 tons of stock MPBSTX-TOTAL, while nickel CMNI3 nudged up 0.3% to $16,840 and tin CMSN3 shed 0.3% to $54,800.
Dollar weakness adds support
The dollar slumped overnight on fading rate hike expectations after dovish comments by Federal Reserve Governor Christopher Waller. A cheaper dollar can support greenback-denominated commodities by making them more affordable for buyers using other currencies.
Copper rises on tight inventories and weaker dollar
Sept. 4 (Reuters) - Copper ticked higher on Friday and was set to post a 10th straight weekly rise, as thinning inventories outside the U.S. and a soft dollar lent support.
Benchmark three-month copper CMCU3 on the London Metal Exchange was up 0.2% at $14,360 a metric ton in official open outcry activity, moving closer to its all-time peak of $14,527.50.
The metal was on course for a 0.4% gain this week. It has risen every week since the week beginning June 29 as ballooning inventories in the U.S. HG-STX-COMEX in anticipation of possible import tariffs tighten the market elsewhere.
