Copper steadied after approaching $11,000, heading for weekly gains
Copper rallied toward $11,000 a metric ton on Friday before losing steam but was still on track for a weekly gain amid renewed optimism over trade talks between the United States and China, as well as ongoing concerns about supply shortages.
HG1 three-month copper benchmark! on the London Metal Exchange was down 0.1% at $10.841 in official open outcry trading. It previously rose as much as 1.1% to $10,969, its highest since Oct. 9, when it hit a 16-month peak of $11,000.
White House press secretary Karoline Leavitt has confirmed US President Donald Trump will meet Chinese President Xi Jinping next Thursday in South Korea.
“General market sentiment remains positive, but market players are showing caution ahead of next week’s Federal Reserve meeting, which could add fresh direction to metals and currency markets,” said Neil Welsh, head of metals at Britannia Global Markets, in a note.
Copper’s momentum was capped by a slightly stronger dollar DXY, which made the dollar-denominated commodity more expensive for holders of other currencies. However, metals used in power generation and construction are expected to record a rise of 2.2% this week as concerns about limited supply persist.
Chilean miner Antofagasta ANTO on Thursday said it expects copper production in 2025 to be below estimates of 660,000-700,000 tonnes.
LME copper stocks (MCUSTX-TOTAL) of 136,350 tonnes were at their lowest point since late July, while copper inventories in Shanghai Futures Exchange (CU-STX-SGH) warehouses fell 4.9% from last week to 104,792 tonnes.
SP Angel analyst John Meyer said there was potential pressure on copper as seen on zinc this week, with Chinese smelters conducting the London-Shanghai arbitrage risking being caught out by a lack of physical metal.
ALI1 Aluminum! fell 0.4% to $2,851 a tonne, after touching $2,883.50, its highest since May 2022 on supply concerns. Zinc ZNC1! edged up 0.1% to $3,019, leading LEAD1! rose 0.3% to $2,016 and FTIN1 lead! rose 0.1% to $35,815, while nickel NICKEL1! fell 0.5% to $15,280.
Source: Reuters
