Dollar Strength Sinks Industrial Metals as Copper Prices Slide

Thursday saw industrial metals decline as the US dollar strengthened. Copper prices slipped to $14,086.5 per metric ton on the London Metal Exchange (LME), despite dwindling stocks. The dollar's rise is a concern for overseas buyers, who face higher costs in their own currency when the dollar increases.

According to Reuters, the dollar index rose to 100 and is set for a weekly gain. This development matters because most industrial metals are priced in dollars. When the dollar rises, it effectively makes imports more expensive for foreign buyers.

The physical market appears tighter than the headline price suggests. LME inventory outflows continued, with BNP Paribas's strategist David Wilson noting that 'a lot of metal is getting sucked into the US' due to uncertainty over potential tariffs on refined copper.