Copper Prices Weighed Down by Strong Dollar and Tariffs
The escalation of the US-Iran conflict and implementation of US tariff policies weighed on copper prices last week, according to the Shanghai Metals Market's Macro Weekly Review.
Rising oil prices fueled inflation expectations, further supporting the strong US dollar index. The LME copper price pulled back from its weekly high of $13,934/mt to $13,360/mt, a decline of 2.18%, while the most-traded SHFE copper contract fell by 1.94%.
Copper inventories in China decreased by 14,200 mt to 109,200 mt, but suppliers' willingness to sell increased due to rising imports and canceled LME warrants that are expected to arrive at ports soon.
The market remains cautious, with attention turned to the potential impact of further US-Iran conflict escalation on energy facilities and oil prices. The strong US dollar index may continue to put pressure on copper prices.