Copper prices experienced an uptick on Wednesday, bolstered by supply concerns and a weaker U.S. dollar, though the gains were tempered by apprehensions regarding demand from China, the top consumer. On the London Metal Exchange, three-month copper climbed 0.5% to $9,719 per metric ton by 0206 GMT, while the most-traded July copper contract on the Shanghai Futures Exchange edged up by 0.2% to 78,680 yuan ($10,843.74) per ton.
The copper output at Anglo American’s Los Bronces mine in Chile is projected to drop nearly a third from average historical levels next year, as the company halts a processing plant for maintenance, according to the company’s head in Chile. This anticipated decline in copper production has contributed to the price rally observed this year, exacerbated by shortages in mined copper.
Despite high prices, copper consumption in China has been restrained, further impacted by disappointing economic data this week. ANZ analysts noted that a decrease in China’s spot demand led to unusual large-scale exports, which in turn elevated LME stockpiles. As a result, copper stocks in LME warehouses rose to their highest levels since January.
The dollar stabilised on Wednesday, following losses after weak U.S. retail sales data strengthened the anticipation of imminent Federal Reserve rate cuts. A weaker dollar typically makes dollar-priced commodities cheaper for buyers using other currencies.
Other metals also saw price movements. On the LME, nickel increased by 0.1% to $17,310 per ton, aluminium rose by 0.6% to $2,502.50, zinc advanced by 0.8% to $2,859.50, and lead surged by 1.7% to $2,229. However, tin experienced a slight decline of 0.1% to $32,110.
Meanwhile, on the SHFE, aluminium went up by 0.7% to 20,515 yuan, zinc climbed by 1.2% to 23,745 yuan, and tin increased by 0.2% to 267,890 yuan. Lead saw a significant rise of 2.5% to 19,365 yuan, while nickel decreased by 1.1% to 134,130 yuan per ton.
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.
