Copper slips as inventories build; weak dollar offers support

Copper prices edged lower on Thursday as more metal reached London Metal Exchange warehouses, Business Recorder reported from London. The benchmark three-month contract was quoted 0.4% down at $13,988 a metric ton by 1025 GMT, after gaining 0.5% in the previous session. Losses stayed modest because the dollar weakened after the US government stepped in to steady its bond market.

LME copper touched a six-month high on Monday over concerns about scarce stocks, but has since eased as metal refilled storage sites. Inventories grew by another 3,950 tons on Thursday, pushing the past week's rise to 17%. Stocks on warrant, which are not earmarked for removal, have climbed over 50% since Monday yet remain below half of their level three months ago.

Ole Hansen of Saxo Bank in Copenhagen called the Treasury's buyback announcement a factor that slowed the decline as metal returned to the LME. He said it sends a strong signal of a possible weaker dollar ahead and reflects investors seeking hard assets alongside debt, with copper leading that trend. Other metals were mixed: aluminium lost 1% to $3,196 a ton, nickel fell 1.3% to $16,890, zinc rose 1.2% to $3,751, lead gained 0.1% to $1,890 and tin added 0.3% to $55,705.