Copper prices rose on Thursday and hovered near a key resistance level of $10,000 a metric ton, supported by a softer dollar, although an analyst said weak demand could limit further gains.
Three-month copper on the London Metal Exchange (LME) rose 0.5% to $9,944.50 per ton by 0650 GMT, aluminium edged up 0.2% to $2,583.50, and tin climbed 1.3% to $31,000.
LME zinc rose 0.8% to $2,903 a ton and lead advanced 0.5% to $2,190.50, while nickel shed 0.5% to $18,785.
The dollar fell after the Federal Reserve signaled it was still leaning toward eventual reductions in interest rates.
A weaker dollar makes greenback-priced metals cheaper to holders of other currencies.
LME copper, which gained 12.7% to near a record high last month, has been hovering around the $10,000 level, backed by speculative funding, hopes of lower rates, improved Chinese macroeconomic data and mine supply disruptions.
“The recent price rally is largely supply-driven… Demand is yet to fully come back. This is reflected in subdued spot premium,” said ANZ analyst Soni Kumari.
“Any supply side surprise can potentially dampen this rally in the short-term, as the recent price rise came sooner and faster than expected.”
Copper dips on funds profit taking, stronger dollar
China’s copper producers are planning to export up to 100,000 tons of the metal, the largest volume in 12 years, aiming to cool a recent price rally that hit their order books, sources said.
On-warrant aluminium stocks in LME-approved warehouses dropped to 131,375 tons on Tuesday, the lowest since at least 1998, as cancelled warrants - metals earmarked for delivery - surged 82% in just over two weeks.
LME aluminium prices rose 10.9% last month, the best since January 2023, on supply disruption concern amid sanctions on Russian metal, and optimism around China’s economic recovery.
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