Copper prices are experiencing an upswing as a weakening US dollar enhances their affordability for international buyers. On the London Metal Exchange, copper climbed to $9,089.50 per metric ton, while on the Shanghai Futures Exchange, it reached 74,380 yuan per ton. This positive trend reflects a renewed appeal of base metals in global markets. However, challenges remain, particularly concerns over China’s economic measures and the potential for new tariffs on Chinese imports under the incoming US administration.
While copper inventories in Chinese warehouses are shrinking, hinting at robust local demand, stock levels on the London Metal Exchange and COMEX remain stable. This suggests that consumption outside China has not picked up significantly. Other metals, including aluminium, nickel, zinc, lead, and tin, have also benefited from the dollar’s decline, reinforcing the broader impact of currency movements on the commodities market.
The depreciation of the US dollar has created opportunities for investors in base metals, as they become more attractive globally. Despite this optimism, uncertainties such as the risk of trade tariffs and fluctuating Chinese demand could temper these gains. Investors should weigh these factors carefully, as global demand signals remain mixed. China’s decreasing inventories indicate solid domestic consumption, yet steady stocks elsewhere highlight subdued interest in other regions. The interaction between economic policies in China and international trade tensions will likely shape the trajectory of commodity markets in the near future.
London-listed company KEFI Gold and Copper plc (LON:KEFI) is an exploration and development company focused on gold and copper deposits in the highly prospective Arabian-Nubian Shield. The Company operates in Ethiopia and Saudi Arabia with projects including Tulu Kapi project, Jibal Qutman EL and Hawiah.
