Copper crawls higher on softer dollar, but investors wary about demand

Business Recorder reported that copper prices rose modestly on Friday, with the three-month contract on the London Metal Exchange up 0.3% at $14,289 a metric ton by 1000 GMT. The metal was still about 2% below its level at the close of the previous week. Gains were held back by concerns that elevated oil prices could weigh on demand.

Support came from a weaker US dollar, which had reached its strongest level in 17 months before easing on Friday, making dollar-priced commodities cheaper for overseas buyers. Supply concerns also played a role, as Chile's copper production dropped 12.8% year-on-year in August and supervisors at the Escondida mine, the world's largest, turned down a collective contract offer, opening the way for a possible strike. Welsh, head of metals at Britannia Global Markets, pointed to elevated energy costs tied to the US-Iran conflict and softer industrial activity in China as drags on sentiment.

Stocks held in Shanghai Futures Exchange warehouses fell 79% over four months to 38,744 tons, their lowest since January 2024, though the exchange is shut for China's National Day and reopens on October 8. Investors are also waiting for US September payrolls figures due Friday, which will shed light on the economy's health and on whether the Federal Reserve lifts rates again. Aluminium gained 0.5%, reaching $3,137 a ton, while zinc, lead, nickel and tin also moved up slightly.