Copper Prices Slide Amid Stronger Dollar and Energy Price Surge
The LME copper price dipped by 1.42% overnight to settle at $14,024.5/mt, while the SHFE copper 2610 contract lost 3.29% to close at 106,920 yuan/mt.
According to SMM Copper Morning Comment, the decline in copper prices is attributed to a stronger US dollar, fueled by risk-off sentiment and expectations of rising interest rates ahead of the US Fed policy meeting.
The escalating geopolitical conflicts have also pushed energy prices higher, reigniting inflation concerns and weighing on copper prices. Supply remained tight overall as domestic copper and imported cargoes arrived in small volumes, while demand side saw some recovery due to downstream dip-buying during the traditional peak season.
SMM copper inventories across major Chinese regions rose 5,200 mt WoW to 90,300 mt, down 63,900 mt from 154,200 mt in the same period last year. As a result, copper prices are expected to drift lower today.