Copper Prices Plummet as Dollar Rebounds Amid Strong US Employment Data
Copper prices took a hit on Thursday as the US dollar rebounded from a two-week low, driven by stronger-than-expected employment data.
The data showed that US nonfarm payrolls rose by 162,000 in August, significantly exceeding expectations of a 56,000 gain. This has increased expectations of tighter monetary policy and weighed on copper prices.
However, the fundamentals of the copper market remain mixed. While supply concerns are building due to potential US tariffs, inventories have been increasing for 53 consecutive days to a record 764,597 short tons.
The Shanghai Futures Exchange reported a decline in copper inventories of 13% week-on-week to 63,000 tons, their lowest level since January 2024. Meanwhile, the LME stocks fell by 475 tons with another 1,550 tons marked for withdrawal.