LONDON: Copper ticked higher on Friday and was set to post a 10th straight weekly rise, as thinning inventories outside the US and a soft dollar lent support.
Benchmark three-month copper on the London Metal Exchange was up 0.3percent at USD14,373 a metric ton as of 0900 GMT, moving closer to its all-time peak of USD14,527.50.
The metal was on course for a 0.5percent gain this week. It has risen every week since the week beginning June 29 as ballooning inventories in the US in anticipation of possible import tariffs tighten the market elsewhere. US copper imports in July hit their highest level on record, while Shanghai Futures Exchange data on Friday showed copper inventories fell 13percent from last week to 63,000 tons, the lowest since January 2024. LME copper stocks dipped by 475 tons, and there were orders to withdraw another 1,550 tons.
The tariff uncertainty should continue to support copper, although already elevated prices are “likely to limit near-term gains,” BMI, a unit of Fitch Solutions, said in a note.
The dollar slumped overnight on fading rate hike expectations after dovish comments by Federal Reserve Governor Christopher Waller. A cheaper dollar can support greenback-denominated commodities by making them more affordable for buyers using other currencies. Aluminium slipped 0.5percent to USD3,295 but was still on track to end the week 1.6percent higher.
The cash-to-three month aluminium spread has flipped into a slight backwardation, signalling tightening availability. “We remain neutral to constructive near-term given low visible inventories and a still-tight physical market,” Citi said in a note on aluminium, adding that the balance would become more challenging over the next six–12 months as ex-China supply growth accelerates.
Zinc added 0.5percent to USD3,932.50, with the three-month spread still in steep backwardation at USD140 a ton. Lead was up 0.5percent at USD1,912.50 after orders to withdraw 8,450 tons of stock, while nickel nudged up
0.2percent to USD16,825 and tin shed 0.4percent to USD54,700.
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