Copper futures eased on Friday as a stronger dollar impacted the market. However, the London contract was poised for its first weekly gain in five weeks, driven by improved physical demand following a price slump to a two-month low earlier this week.
As of 0626 GMT, three-month copper on the London Metal Exchange (LME) was down 0.6% at $9,799.50 per metric ton, though it had managed a 0.6% gain over the week. The U.S. dollar hit an eight-week high above 159 yen and remained close to a five-week peak against the sterling. This movement was influenced by the Federal Reserve’s patient approach to cutting interest rates, contrasting with more dovish stances from other regions.
BMI analysts noted that base metal prices continued to face pressure as the Federal Reserve held steady for the seventh consecutive meeting in June. They suggested that a delayed Fed rate cut could limit the upside for base metal prices in 2024. A stronger dollar makes greenback-priced metals more expensive for holders of other currencies, which contributed to the pressure on copper prices.
Earlier in the week, LME copper reached $9,551 per ton, the lowest in two months, raising concerns about weak demand due to high stockpiles. Despite the drop, the lower prices encouraged more physical purchases, providing support around $9,500-$9,600 per ton.
On the Shanghai Futures Exchange, the most-traded July copper contract remained nearly flat at 79,470 yuan ($10,944.77) per ton. Other metals experienced mixed performance. LME aluminium eased 0.3% to $2,515 per ton, nickel fell 0.6% to $17,325, zinc declined 0.4% to $2,862.50, lead shed 0.7% to $2,202, and tin dropped 1% to $32,755.
In Shanghai, aluminium dipped 0.2% to 20,500 yuan per ton, nickel fell 0.6% to 134,360 yuan, lead dropped 1.6% to 18,740 yuan, while zinc rose 0.2% to 23,845 yuan, and tin increased 0.4% to 272,240 yuan.
Jubilee Metals Group plc (LON:JLP) is a diversified metal recovery business with a world-class portfolio of projects in South Africa and Zambia. The Company’s expanding multi-project portfolio across South Africa and Zambia provides exposure to a broad commodity basket including Platinum Group Metals, chrome, lead, zinc, vanadium, copper and cobalt.
