Copper Prices Rise on Softer Dollar and Chinese Support
Copper prices continued their upward trend on Friday, despite an unexpected surge in London Metal Exchange (LME) warehouse stocks. The metal climbed to around $14,204 a metric ton, according to Reuters, thanks to a softer US dollar and fresh pledges from China to support its growth.
The day's price movement came as a surprise, given the significant increase in LME-registered warehouse inventories. Available stocks jumped 87% in just two weeks, reaching 168,600 tons, the highest level since early July. However, this shift has eased concerns about a near-term shortage and reduced the premium for immediate delivery versus delivery a few months out.
The collapse of the cash-to-three-month premium from $436 to $47 suggests that sourcing metal quickly is becoming easier, making the market less vulnerable to sudden squeezes. As a result, copper prices may be more sensitive to broader economic forces, including currency moves and China's growth outlook.