Weaker US Dollar Index Supports Copper Prices Amid Economic Data Pullback

The copper market saw price fluctuations last week, but ultimately ended on a positive note. On Friday night, LME copper opened at $14,108.5/mt and dipped to $14,099.5/mt early in the session before increasing to a high of $14,196/mt. It closed at $14,172.5/mt, up 0.26%. Trading volume rose to 13,000 lots, while open interest increased by 3,237 lots from the previous trading day.

The most-traded SHFE copper 2609 contract opened at 107,920 yuan/mt and dipped to 107,650 yuan/mt early in the session before moving straight up to a high of 108,320 yuan/mt. It finally closed at 108,200 yuan/mt, up 0.49%. Trading volume rose to 26,000 lots, while open interest decreased by 815 lots from the previous trading day.

The US dollar index was impacted by weaker economic data, including negative growth in US retail sales and a pullback in consumer confidence. This caused market expectations for multiple US Fed rate hikes before mid-2027 to decrease, supporting copper prices. On the fundamentals side, supply was tightened as some suppliers registered their cargoes as registered warrants ahead of delivery.

However, downstream purchases were mainly driven by rigid demand, and a slight pullback in copper prices lifted some willingness to price among buyers. Overall, copper prices are expected to move sideways within a narrow range while holding up well.