LONDON: Copper prices edged up on Friday, boosted by a weak dollar and worries about a potential tightening of supply from mines.
Three-month copper on the London Metal Exchange (LME) was up 0.2% at $8,240 a metric ton by 1120 GMT after retreating from a six-week high in the previous session.
“We’re waiting to see what happens in Panama, there’s no doubt that on the mining side of things, it’s pretty tight,” said Dan Smith, head of research at Amalgamated Metal Trading.
First Quantum Minerals this week reduced ore processing at Cobre Panama, one of the world’s biggest copper mines, as protests against the project blocked port access.
“The fundamental story for copper is very important – the green energy transition being very strong - and that’s why nobody’s that bearish on copper at the moment,” Smith added.
In the short term, technical signals were suggesting a correction, but prices should resume the uptrend into year-end, he added.
Copper hits six-week high after technical break
LME copper has bounced from an 11-month low of $7,856 on Oct. 23.
The dollar was on track for one of its steepest weekly falls against major currencies this year as concerns grow about the worsening global economic outlook.
A weaker U.S. currency makes dollar-priced commodities less expensive for holders of other currencies.
On the Shanghai Futures Exchange (SHFE), the most traded December copper contract edged up 0.2% to 67,920 yuan ($9,372.54) a ton.
Capping gains, however, were worries about demand in China, which accounts for nearly half of global copper consumption. Those concerns were reinforced this week by a fourth consecutive monthly fall in prices of new homes.
China’s increasing refined copper production is another drag for the market, ANZ Research said.
Data on Friday showed that China’s refined copper production in October jumped 13.3% year on year.
In other metals, aluminium eased 0.5% to $2,204.50 a ton, nickel lost 0.3% to $16,975, zinc dropped 0.9% to $2,552 and tin dipped 0.1% to $25,160 while lead was up 0.1% at $2,285.50.
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