LONDON: Copper rose on Friday, recovering from three sessions of falls, as stocks in warehouses LME-registered warehouses fell to their lowest since April and investor focus shifted to U.S. employment figures due later in the day.
Benchmark copper on the London Metal Exchange (LME) was up 0.6% at $8,314 a metric ton by 1041 GMT, on track to finish the week flat after two weekly declines.
“The focus is on the U.S. jobs report today and its potential impact on risk appetite and rate expectations,” said Ole Hansen, head of commodity strategy at Saxo Bank.
The U.S. jobs data could raise the likelihood of interest rates staying higher for longer, affecting demand for the growth-dependent metals in the long term and supporting the dollar in the short term. A stronger U.S. currency makes dollar-priced commodities less attractive for buyers with other currencies.
Copper, which is largely used in power and construction, is down 13% from mid-January peaks achieved during a short-lived period of bright expectations for a post-pandemic boom in China.
Copper falls on weak global growth outlook
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 stocks in warehouses monitored by the Shanghai Futures Exchange rose by 9%.
On the technical front, LME copper faced resistance on Friday from a 50-day moving average at $8,344.
In other metals, LME aluminium rose by 0.2% to $2,134, tin fell 0.8% to $28,310, nickel lost 2.3% to $20,715, zinc was down 0.3% at $2,356.50 and lead slipped by 0.2% to $2,045.50.
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