Copper leads base metals higher ahead of LME Week

LONDON: Copper prices led other base metals higher on Friday as a weaker dollar offered support, while equity markets stabilised after Thursday’s sharp selloff in technology stocks, improving risk appetite for growth-dependent metals.

Benchmark three-month copper on the London Metal Exchange rose 0.9% to $14,480 a metric ton in official open-outcry trading, recovering from a near two-week low of $14,256 touched on Thursday.

The annual LME Week gathering in London next week for metals consumers, producers, traders and brokers coincides with the third Wednesday of the month, when monthly LME contracts expire.

Copper and zinc, along with aluminium and tin, are heading into next week in backwardation, with cash contracts trading at a premium to three-month contracts, a structure that points to some tightness for nearby supply.

“The real tightness in refined copper this year has been due to refined metal continuing to flood into the US ahead of anticipated tariffs to come in January next year,” Ian Roper, metals researcher at brokerage Marex, said in a presentation.

However, Roper expects copper to come under pressure towards year-end as the window for shipments to clear US customs before the end of the year begins to close in early December, freeing up some metal for markets outside the US.

Copper is up 17% so far this year, having hit a record high of $14,875 five weeks ago.

LME aluminium rose 0.8% to $3,011.5 a ton in official activity. Analysts expect this market to swing into a surplus in 2027 due to new supply from Indonesia and a recovery in flows from the Gulf smelters.

Zinc gained 0.9% to $3,698.5. Roper said rising Chinese exports would weigh on zinc prices in the coming months.

Nickel added 0.9% to $15,350, having touched $15,070 on Thursday, its lowest level in nearly 10 months. Around these levels, higher production costs in top producer Indonesia provide support, Roper said.

Lead and tin climbed 0.5% to $1,890 and $50,350, respectively.