Copper Edges Higher Amid Dollar Weakness, Supply Fears

Copper prices have inched upwards on the London Metal Exchange, boosted by a weaker dollar and supply chain issues. However, investors remain cautious due to concerns over high oil prices impacting demand.

The three-month copper benchmark rose 0.3% to $14,289 a metric ton as of 1000 GMT on Friday. This follows a decline of 2% since the end of last week.

Nearly all metals saw modest price increases, with aluminum rising 0.5%, zinc up 0.1%, lead ticking 0.4% higher, nickel gaining 0.3%, and tin edging up 0.3%. The dollar index weakened on Friday after reaching its strongest level in 17 months this week.

The copper market has been influenced by a shift in inventories to the US due to potential tariffs, resulting in shortages elsewhere. Stocks monitored by the Shanghai Futures Exchange have plummeted by 79% over the past four months to 38,744 tons, their lowest since January 2024.