Copper Prices Retreat Amid Dollar Strength, Tight Supply Concerns
Copper prices have retreated due to a stronger dollar and profit-taking, but factors such as tight LME inventories and strong Chinese demand are providing support for the market.
The London Metal Exchange (LME) benchmark three-month copper CMCU3 fell 1% at 16:00 GMT to $14,606.50 per tonne after touching its highest level since September 10 at $14,833 per tonne.
Comex copper inventories have begun to see moderate daily inflows, which has intensified concerns about tight supply outside the United States.
The premium of U.S. copper futures over LME prices rebounded somewhat after a Reuters report that the White House had not yet made a decision on copper import tariffs triggered concerns about affordability.
Analysts at RBC Capital Markets said, 'Buyers are willing to pay a premium to lock in metal more quickly, which reinforces the narrative of a tightening market.'