Copper Prices Rebound on LME Amid Weaker Dollar and Chinese Stimulus

Copper prices have rebounded on the London Metal Exchange (LME) following a brief dip earlier in the week. On August 21, three-month contracts traded at around $14,230 per metric ton, up approximately 1.4% for the day.

The market's uptrend is attributed to a weaker US dollar and statements from Chinese authorities indicating their intention to increase government spending to stimulate domestic demand.

China remains the world's largest consumer of copper, and expectations of additional government spending typically support industrial metal prices. However, volatility remained high throughout the week due to concerns over limited supply of available metal outside the US.

A brief squeeze occurred on the LME in mid-August, causing a sharp rise in the price of metal for immediate delivery. This was followed by the arrival of additional copper from the US and Asia at exchange warehouses.