LONDON: Copper prices rose on Friday, driven by a weak dollar and concerns about a potential tightening of supply from mines.
Three-month copper on the London Metal Exchange (LME) was up 0.2% at $8,240 per metric tonne by 1120 GMT, after pulling back from a six-week high in the previous session.
“We’re waiting to see what happens in Panama, there’s no doubt things are pretty tight on the mining side,” said Dan Smith, head of research at Amalgamated Metal Trading.
First Quantum Minerals this week reduced ore processing at Cobre Panama, one of the world’s largest copper mines, as protests against the project blocked port access.
“The fundamental story of copper is very important; the transition to green energy is very strong, and that’s why no one is being so negative about copper right now,” Smith added.
He added that technical signals point to a correction in the short term, but prices should maintain their upward trend until the end of the year.
Copper rises to six-week high after technical break
LME copper bounced from an 11-month low of $7,856 on October 23.
The dollar is heading for one of its steepest weekly declines against major currencies this year as concerns grow about a worsening global economic outlook.
A weaker U.S. currency makes dollar-denominated commodities cheaper for those who hold other currencies.
On the Shanghai Futures Exchange (SHFE), the December copper contract rose 0.2% to 67,920 yuan ($9,372.54) per tonne.
However, gains were limited by concerns about demand in China, which accounts for almost half of global copper consumption. These concerns were further strengthened this week by the fourth consecutive monthly decline in new home prices.
ANZ Research said China’s increasing production of refined copper was another hurdle for the market.
Friday’s data showed that China’s refined copper production rose 13.3% year on year in October.
In other metals, aluminum decreased by 0.5% to $2,204.50 per ton, nickel decreased by 0.3% to $16,975, zinc decreased by 0.9% to $2,552, tin decreased by 0.1% to $25,160, and lead increased by 0.1% to $2,285. It rose to $.50.
news source (www.brecorder.com)
