Copper tiptoes higher on weaker dollar, tight Chinese supplies
CPER•Copper rose 0.2% to $14,651 a metric ton on the London Metal Exchange, supported by a weaker dollar and tight supplies in China. It was up 0.8% from the previous week's close.
1. Copper edges higher
Benchmark three-month copper rose 0.2% to $14,651 a metric ton by 1000 GMT, bringing its gain from the previous week's close to 0.8%. The weaker dollar made commodities priced in dollars relatively cheaper for buyers using other currencies, while investors remained wary that further rate hikes could weigh on metals demand.
2. Chinese supplies tighten
Copper has gained 10% over the past three months as speculation about potential U.S. tariffs sent large flows of metal to the United States, creating shortages elsewhere. Visible inventories in China have fallen, and smelters have announced reduced production schedules for maintenance, contributing to tight local supply.
3. Other metals mixed
LME zinc rose 0.2% to $3,961 a ton after reaching a two-week high, supported by supply concerns following Nyrstar's strategic review of its Dutch zinc smelting operations. Aluminium and tin rose, while lead and nickel fell.
