Key Takeaways
- Copper prices recovered, rising 1.08% to $14,464 a metric ton.
- Supply risks, including mine disruptions and a strike in Chile, supported prices.
- China's strong demand, as gauged by the Yangshan copper premium, also contributed to the rise.
Copper prices rebounded on Friday, recovering most of the previous session’s losses, as market analysts attributed the rise to supply-side issues and robust demand in China’s top consumer market.
Benchmark three-month copper on the London Metal Exchange increased by 1.08% to $14,464 a metric ton by 0300 GMT, after a 1.15% drop the previous day. This marks a 1.44% gain for the week so far.
Daniel Hynes, senior commodity strategist at ANZ, stated, 'Copper is near record levels, supported by supply-side issues.'
The Yangshan copper premium, a measure of China’s appetite for imported copper, surged to $125 a ton, its highest since November 2022, following the return of China from a week-long holiday.
A workers’ union at Antofagasta’s Centinela copper mine in Chile announced that their ongoing strike would begin to weigh on output in November, potentially halving production.
Disruptions at other mines and falling stocks outside the US have added to the already heightened supply risk, while copper has been pulled into the country ahead of potential tariffs on refined copper imports.
The dollar index, which measures the greenback against a basket of other currencies, showed a slight decline, making commodities less expensive for buyers using other currencies.
Among other industrial metals, aluminium gained 1.08%, zinc gained 0.97%, lead gained 0.75%, nickel gained 0.72%, and tin rose 1.56%.
In the Shanghai Futures Exchange, aluminium dipped 0.34%, zinc lost 1.09%, lead lost 1.3%, nickel dipped 0.08%, and tin dropped 4.03%.
Copper is near record levels, supported by supply-side issues.
Daniel Hynes, Senior commodity strategist at ANZ
