Supply problems, lower dollar copper footing to a height of 16 months
The price of copper rose to the highest 16 months on Thursday due to concerns about deficiencies due to lower supply and dollar disorders exceeding the prospect of weak demand in leading China.
Benchmark Copper Hg1! In the London Metal Exchange is traded up 1% to $ 10,479 per metric ton on the official ring from $ 10,520.5 before, the highest since May last year when the highest industrial metal record price above $ 11,100 per ton.
The latest inventory comes from Indonesia where the FCX Grasberg Freeport-McMoran operation suspended operations on September 8 after the deadly slide slide. The suspension in Grasberg participated in other major disturbances this year including Kamoa-Kecula in the Democratic Republic of Congo and El Teniente in Chile.
“Copper also rose because of the dollar, which was under more pressure due to the closure of the US government. It was already under pressure from the problem of US tariffs and the US economy slowed down,” said Panmure Liberum Tom Price analyst.
The lower US currency makes metals with dollar prices cheaper for other currency holders that can increase the demand for industrial metals.
The US government has closed most of its operations after the partisan division prevents the congress and the White House from reaching funding agreements.
Factory activities shrank in most of the world last month, a personal survey showed this week as a sign of slowdown in US growth and the anticipated impact of President Donald Trump’s tariff added pressure from weak Chinese demand.
The focus is also on the zinc stock in the registered LME warehouse which at 40,350 tons has fallen 66% from mid -July to the lowest since March 2023.
Concerns about the availability of zinc at LME have triggered a surge in premiums for cash contracts for the next three months to the highest three years around $ 80 per ton compared to a $ 6 discount in July (CMZN0-3).
Zinc three months rose 1.1% at $ 3,020 after previously reaching nine months at $ 3,032 per ton.
In other metals, aluminum rose 0.6% to $ 2,704.5, Lead Lead1! up 0.4% to $ 2,018.5, tin Ftin1! Advanced 0.8% to $ 36,300 and nickel added 0.6% to $ 15,280 per ton.
Source: Reuters
