SINGAPORE: London and Shanghai copper prices were poised to log weekly gains on Friday, underpinned by a weaker U.S. dollar and persistent concerns over possible U.S. tariffs on copper imports.
The London Metal Exchange (LME) three-month copper ticked down 0.11% to $9,889 per metric ton as of 0718 GMT, having earlier hit $9,917, its highest since March 27. It was up 2.71% for the week.
The Shanghai Futures Exchange (SHFE) copper rose 1.5% to 79,920 yuan ($11,148.93), having hit 80,060 yuan, or its highest since March 31. It was also up 2% for the week.
“Copper prices have been driven up by topics of common interest, including a weaker dollar, the continuing flow of copper to the U.S. from LME on possible U.S. copper import tariff, and the concerns on supply tightness elsewhere in the near-term,” said a Beijing-based metals analyst from a futures company on condition of anonymity.
The dollar drifted on Friday, hovering near its lowest level in 3-1/2 years against the euro and sterling, as traders wagered on deeper U.S. rate cuts while awaiting trade deals ahead of a July deadline for President Donald Trump’s tariffs.
Shanghai copper hits two-week high as dollar weakens
A softer dollar makes greenback-priced commodities less expensive for buyers using other currencies.
The premium for the LME cash copper contract over the three-month contract rebounded to $310 a ton, its highest since November 2021, indicating near-term supply tightness, and the premium of Comex over LME copper rose to $1,403 a ton on Thursday, or its highest since April 25.
LME lead fell 0.32% to $2,032 a ton, tin fell 0.28% to $33,655, aluminium down 0.14% to $2,580, and nickel eased 0.06% to $15,200.
SHFE zinc was up 1.15% to 22,410 yuan, aluminium gained 0.98% to 20,580 yuan,and tin rose 0.73% to 268,550 yuan, while lead ticked down 0.46% to 17,125 yuan.
Comments
Comments are closed for this article.