Copper Prices Edge Higher Amid Supply Worries and Weaker Dollar

Copper prices edged higher on Friday as the US dollar eased and supply worries resurfaced. The weaker dollar helped copper prices rise by 0.5% on the London Metal Exchange, making dollar-priced metals cheaper for non-US buyers.

However, gains remained modest due to expensive oil and patchy signals from China keeping traders cautious. Shanghai Futures Exchange (SHFE) warehouse stocks have dropped 79% in four months to 38,744 tons, their lowest since January 2024, indicating a shortage of metal for nearby delivery.

The tight supply is also affected by Chilean production issues, with August output down 12.8% from the same period last year and supervisors at Escondida rejecting a contract offer, keeping the risk of a strike on the table.