Copper set for first weekly loss in seven on dollar strength

Copper prices on Friday rebounded from a one-month low hit in the previous session but headed for their first weekly loss since early August as the dollar strengthened this week, making greenback-priced metals more expensive.

Three-month copper on the London Metal Exchange rose 1pc to $6,591.50 a tonne by 0704 GMT.

The dollar dipped from a two-month peak, but headed for its biggest weekly gain in nearly six months as investors awaited Washington's decision on a fresh stimulus package.

Democrats in the US House of Representatives are working on a $2.2 trillion coronavirus stimulus package that could be voted on next week, a key lawmaker said.

"The constant calls from Fed officials to provide additional fiscal support to the economy seemed to (have) jolted lawmakers into action," ANZ analysts said in a note.

Copper on the Shanghai Futures Exchange closed 0.4pc higher at 51,040 yuan ($7,486.40) a tonne.

But the Chinese benchmark dropped 3pc for the week, after two successive weekly gains, as Shanghai exchange inventories rose.

"Recovering copper inventories at the Shanghai Metal Exchange and weakening spot premiums signal easing demand," ANZ commodity strategists said in a separate note.

Global copper smelting activity recovered in August, mainly due to a jump in activity in North America, data from satellite surveillance of copper plants showed.

Tin prices are due to extend their rally next year as China stocks up on the metal due to a recovery in demand for electronic goods.

On the LME, aluminium gained 0.5pc, zinc climbed 1.2pc, nickel added 1.2pc and tin jumped 0.9pc.

Shanghai nickel gained 1pc while Shanghai lead slumped 2.4pc.