Copper rises on supply woes but dollar drives weekly fall
CPER•Copper rose 0.58% to $14,326.5 a metric ton on Friday, supported by supply concerns, but was down 2.02% for the week as a rising U.S. dollar weighed on prices.
1. Supply concerns support copper
Benchmark three-month copper on the London Metal Exchange rose 0.58% to $14,326.5 a metric ton by 0720 GMT, after falling to the previous day's lows. It was on course for its worst weekly decline since late April, down 2.02% from the end of the prior week.
2. Output and inventories fall
Chile's copper output fell 12.8% year-on-year in August, official data showed. Supervisors at Escondida rejected a collective contract offer, opening the way for a potential strike. Copper stocks in Shanghai Futures Exchange-monitored warehouses fell to 38,744 tons, their lowest since January 2024.
3. Dollar weighs on prices
Supply concerns were outweighed by a rising U.S. dollar, which reached a 17-month high before paring gains. ANZ strategist Daniel Hynes said the Chilean developments added to an overall slump in output as the industry struggles with aging infrastructure and difficult operating conditions.
