Copper Prices Firm Up on Weakening Dollar and Strong Chinese Demand

Copper prices have firmed up and are poised to end the month on a positive note. The London Metal Exchange's benchmark three-month copper price remained flat at $13,804.5 per metric ton as of Friday morning, putting it on track for a 3.25% gain for the month.

The decline in the US dollar has contributed to the increase in copper prices, making commodity deals cheaper for buyers using other currencies. Copper stocks in LME-registered warehouses have also been decreasing, down 21.38% in July to 255,400 tons. Over 60% of these remaining stocks are under cancelled warrants, indicating they will be removed from circulation.

Strong demand in China has also driven up copper prices, particularly due to a lack of copper scrap forcing some consumers to buy refined metal. The Yangshan copper premium, a gauge of physical demand for the metal, was at $112 per ton, down from its monthly high but still 57.75% higher than this time last month.