Copper Soars on China Demand, Capped by Strong Dollar

Copper prices continue to rise on strong demand from top consumer China, despite being capped by a firm dollar. The London Metal Exchange's benchmark three-month copper price was up 0.7% at $14,770 a metric ton as of 0930 GMT, having gained 1% in the previous session.

This marks the sixth consecutive day of gains for copper prices, with LME copper climbing 18% so far this year. The surge is largely due to large flows of metals to the US on speculation about tariffs on refined copper.

Ewa Manthey, commodities strategist at ING, attributes the support for copper prices to tightening physical market conditions in China. Falling inventories and seasonal restocking demand are offsetting the stronger dollar and tariff uncertainty.

The most-traded copper contract on the Shanghai Futures Exchange rose 1.2% to 111,320 yuan ($16,616) a ton, also driven by renewed speculative support. Chinese buyers are stocking up ahead of holidays and smelter shutdowns.