Copper Bounces on Dollar Weakness and Tight Supplies
Copper prices rebounded on Thursday, buoyed by a weaker dollar and tight inventories. The benchmark three-month copper price on the London Metal Exchange rose 1.2% to $13,747.50 per metric ton.
The dollar fell to a one-week low after the Federal Reserve kept interest rates steady, reducing the possibility of a rate hike in September. Markets now price in a 58% chance of a Fed rate hike in September, down from 81% before the policy statement.
Tight inventories and supply concerns contributed to the copper price surge. LME copper stocks fell by 6,900 tons to 255,400 tons, while Shanghai Futures Exchange copper stocks stood at less than 70,000 tons, both the lowest since February. COMEX copper stocks in the U.S. reached a record high of 644,465 metric tons.