Copper Prices Slump as Energy Costs and Strong Dollar Dampen Demand

Copper prices are on track for their largest weekly decline since May as high energy costs and a strengthening dollar weigh on demand.

Futures on the London Metal Exchange (LME) were little changed on Friday, but poised to finish the week more than 2% lower. The weakness in copper is partly due to rising oil prices driven by developments in the Iran conflict, as well as data indicating industrial weakness in top consumer China.

The gains in oil prices have curbed demand for copper, a key component in energy-intensive industries such as manufacturing and construction.