Copper up on supply woes but dollar drives worst week since April

Copper recovered part of the previous sessions' losses on Friday, helped by supply concerns, yet the metal was still heading for its steepest weekly decline since April, according to Business Recorder. The LME three-month contract rose 0.32 per cent to $14,289 per metric ton as of 0300 GMT, but it still stood 2.28 per cent below the close of the prior week.

Supply worries were fuelled by official figures showing Chile, the largest copper producer, recorded a 12.8 per cent drop in output from a year earlier in August. Supervisors at Escondida, the world's biggest copper mine, turned down a labour contract proposal, which could lead to a walkout. ANZ strategist Daniel Hynes said the broader industry is struggling to keep ageing infrastructure running under tough conditions.

Warehouse inventories tracked by the SHFE slipped to 38,744 tons, the lowest level since January 2024, and the exchange stays shut for National Day until October 8. Even so, a firmer dollar, which reached a 17-month peak amid a bond sell-off driven by inflation and debt worries, outweighed supply concerns. A stronger greenback makes dollar-priced metals costlier for buyers holding other currencies, while borrowing costs worldwide have climbed to multi-decade highs. This could sap economic confidence and pressure copper, a metal used as a gauge of economic health.