Copper holds above $14,000 as weak dollar offsets rise in LME inventory
- Benchmark three-month copper on the LME was down 0.04% at $14,043.5 a ton
SINGAPORE: Copper edged down on Thursday, but held above the psychological $14,000-a-metric ton level, as higher inventories on the London Metal Exchange (LME) relieved supply concerns and offset support from sharp falls in the dollar.
Benchmark three-month copper on the LME was down 0.04% at $14,043.5 a ton by 0300 GMT.
The most-traded copper contract on the Shanghai Futures Exchange edged 0.15% higher to 107,140 yuan ($15,934.20) a ton.
Copper stocks on the LME rose by a further 12,425 tons on Wednesday, exchange data showed, relieving concerns around supply due to outflows to US warehouses ahead of the country’s potential introduction of tariffs on refined copper.
Total LME copper stocks at 235,975 tons are 11% up from a week earlier, but still 40% lower than three months ago.
The dollar fell to a level near its lowest in three months as FX investors digested measures announced by the US Treasury Department to help calm the bond market.
The decline helped copper rebound from a two-week low on Wednesday.
A softer US currency usually boosts prices for dollar-denominated commodities by making them cheaper for buyers using other currencies.
Elsewhere, aluminium was down after a report that a trade deal still under negotiation would halve the United States’ top-line tariff rates on imports of the light metal from Canada, to 25%.
The US was traditionally the default destination for aluminium from large producer Canada, but some producers began to divert volumes to Europe after US tariffs were increased.
LME aluminium was down 0.65%, while on the SHFE the metal was down 0.7%.
Among LME metals, zinc dipped 0.05%, lead ticked 0.13% higher, nickel lost 0.69% and tin added 0.41%.
Among SHFE metals, zinc dipped 0.16%, lead added 0.28%, nickel gained 0.84% and tin gained 1.46%.
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