Copper Prices Soar on Soft Dollar and Supply Concerns
Copper prices surged on Friday after weaker-than-expected US jobs data and supply issues pushed the dollar lower. Benchmark three-month copper on the London Metal Exchange rose 0.9% to $14,374.50 a metric ton by 1405 GMT.
The decline in the dollar index made commodities priced in the US currency cheaper for buyers using other currencies. Neil Welsh, head of metals at broker Britannia Global Markets, noted that metals have seen 'light turnover again so far this session with copper finding some support with a slightly softer dollar.' However, the broader tone remains cautious due to high energy costs and signs of industrial weakness in China.
The ongoing US-Iran conflict has weighed on sentiment across the complex. Meanwhile, stocks in warehouses monitored by the Shanghai Futures Exchange have slumped by 79% over the past four months to 38,744 tons, their lowest since January 2024. Additionally, production at Chile's Escondida copper mine, the world's largest, fell 12.8% year-on-year in August after supervisors rejected a collective contract offer.