Copper prices in London fell by 0.3% due to a stronger U.S. dollar and a media report on China’s stockpiling plans. The National Food and Strategic Reserves Administration is assessing purchases of key metals, including copper and lithium, though details are scarce. The dollar’s strength diminished the impact on prices, while U.S. efforts to boost domestic mineral production may influence future trends.
On Friday, copper prices in London experienced a decline due to a stronger U.S. dollar, which overshadowed a report suggesting China’s plans to augment its strategic reserves of industrial metals. The National Food and Strategic Reserves Administration has reportedly begun inquiries and bidding, though specifics regarding volumes and timing remain undisclosed, as reported by Bloomberg News. The metals under consideration for purchase include cobalt, copper, nickel, and lithium, among others.
As of 0339 GMT, the benchmark three-month copper price on the London Metals Exchange (LME) decreased by 0.3%, reaching $9,911 per metric ton. A trader indicated that the news regarding strategic buying had limited influence on metal prices due to the lack of detailed information accompanying the report. Furthermore, the dollar strengthened, reflecting the U.S. Federal Reserve’s recent signals that interest rates will not be lowered in the immediate future.
The dollar index rose by 0.2% to 103.96 following a prior increase of 0.36%. A stronger U.S. dollar makes dollar-priced metals costlier for international buyers utilizing other currencies. In related developments, U.S. President Donald Trump invoked emergency powers to boost domestic production of essential minerals, such as lithium and nickel, in response to China’s dominance in the sector and the expected demand from electric vehicle batteries.
Additionally, other metals witnessed fluctuations: LME aluminum fell by 0.4% to $2,649.5 per ton, lead dropped by 0.7% to $2,042, zinc decreased by 0.3% to $2,911, tin lost 0.7% to $35,100, and nickel fell by 0.6% to $16,180. On the Shanghai Futures Exchange (SHFE), copper also dipped by 0.3% to 81,110 yuan ($11,252.64) per ton, while aluminum fell by 0.3% to 20,775 yuan. Zinc experienced a minor increase of 0.1% to 23,775 yuan, lead fell by 1.3% to 17,435 yuan, and nickel dropped by 0.7% to 129,370 yuan, although tin gained 0.6% to 280,710 yuan.
In conclusion, copper prices have declined due to a stronger U.S. dollar, which has diminished the effect of China’s plans to increase its strategic metal reserves. The market shows a cautious reaction amid the absence of detailed information, although geopolitical developments surrounding mineral production in the U.S. may impact future prices and market conditions. Overall, fluctuations within other metals further illustrate the complexities of the current commodity market landscape.
Original Source: www.tradingview.com
