Key Takeaways
- Copper prices increased by 0.9% to $14,480 a metric ton.
- The rise is attributed to a weaker dollar and stabilised equity markets.
- Copper and zinc are heading into LME Week in backwardation, indicating tight supply.
Copper prices led the base metals market higher on Friday, increasing by 0.9% to $14,480 a metric ton, recovering from a near two-week low of $14,256.
The price rise was supported by a weaker US dollar, which made commodities more attractive to buyers, and the stabilisation of equity markets, particularly after a sharp selloff in technology stocks on Thursday.
Analysts noted that the rise in copper prices was also influenced by the upcoming LME Week, an annual gathering for metals consumers, producers, traders, and brokers, scheduled for the third Wednesday of the month.
Ian Roper, a metals researcher at brokerage Marex, highlighted that the real tightness in refined copper this year was due to metal continuing to flood into the US ahead of anticipated tariffs set to come into effect in January.
However, Roper expects copper to face pressure towards the end of the year as the window for shipments to clear US customs before the end of the year begins to close in early December, potentially freeing up some metal for markets outside the US.
The price of LME aluminium rose by 0.8% to $3,011.5 a ton, with analysts expecting the market to swing into a surplus in 2027 due to new supply from Indonesia and a recovery in flows from Gulf smelters.
Zinc prices gained 0.9% to $3,698.5, with Roper predicting that rising Chinese exports would weigh on zinc prices in the coming months.
Nickel prices added 0.9% to $15,350, having touched $15,070 on Thursday, its lowest level in nearly 10 months, with higher production costs in top producer Indonesia providing support.
Lead and tin prices also climbed, with lead increasing by 0.5% to $1,890 and tin by 0.5% to $50,350.
