LONDON: Copper prices rose on Friday, recovering from three sessions of falls, as the dollar weakened after US employment figures and stocks in LME-registered warehouses declined to their lowest since April.
Benchmark copper on the London Metal Exchange (LME) was up 1.2% at $8,359.5 a metric ton by 1609 GMT, on track to finish the week with a 0.5% growth after two weekly declines.
Making dollar-priced commodities more attractive for buyers with other currencies, the dollar index fell after data showed that US job growth slowed more than expected in June, while labour market conditions remained tight.
This caused traders to stick to bets the US Federal Reserve would raise its benchmark interest rate in July, while making them more sceptical of the chance for further hikes beyond.
Copper, largely used in power and construction, is down 12% from mid-January peaks achieved during a short-lived period of bright expectations for a post-pandemic boom in China.
Meanwhile, high treatment and refining charges for copper smelters in China suggest plentiful supply of copper concentrate, Commerzbank said in a note.
Copper premiums in the Chinese spot market dropped to 60 yuan ($8.3) on Thursday for their lowest since mid-May, while weekly stocks in warehouses monitored by the Shanghai Futures Exchange rose by 9%.
On the technical front, LME copper broke above the resistance from a 50-day moving average at $8,345.
In other metals, LME aluminium rose by 0.8% to $2,145.5, tin fell 0.6% to $28,355, nickel lost 1.7% to $20,845, zinc was down 0.2% at $2,359 and lead was up 0.2% to $2,055.5.
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