Copper prices rose slightly in London after China announced plans to boost its strategic reserves of key metals. The increase is capped by insufficient detail on the plans. Meanwhile, the strong U.S. dollar influences dollar-priced metals. Other metals also show mixed performance in the market.
Copper prices saw a slight increase in London on Friday, approaching the critical $10,000 mark after reports emerged about China’s plans to expand its strategic reserves of essential industrial metals, including copper, cobalt, nickel, and lithium this year. The National Food and Strategic Reserves Administration initiated price inquiries and bidding for these metals, although specific details about volumes or timing were not provided by Bloomberg News.
The three-month benchmark copper contract on the London Metals Exchange (LME) rose by 0.3%, reaching $9,970 per metric ton as of 0303 GMT. However, a trader noted that the news of strategic buying did not significantly influence metal prices on that day due to the absence of detailed information.
The U.S. dollar strengthened following signals from the Federal Reserve that there are no plans to lower interest rates in the near future. The dollar index peaked at 103.82, reflecting a rise of 0.03 as of 0238 GMT, and previously climbed 0.36% on Thursday. A stronger dollar leads to higher costs for dollar-priced metals for overseas buyers.
In addition to copper, other metals on the LME experienced varied price changes. Aluminium increased 0.3% to $2,666 per ton, lead rose 0.1% to $2,057.5, zinc saw a 0.5% gain to $2,932, while tin decreased by 0.1% to $35,310, and nickel dropped by 2% to $16,240 per ton.
On the Shanghai Futures Exchange (SHFE), copper prices also rose by 0.2% to 81,540 yuan ($11,252.64) per ton, with aluminium remaining unchanged at 20,845 yuan. Zinc increased by 0.6% to 23,895 yuan, lead decreased by 0.5% to 17,590 yuan, nickel lost 0.3% to reach 129,890 yuan, and tin gained 1% to 281,620 yuan.
In summary, China’s reported plans to stockpile key industrial metals stirred a slight increase in copper prices, although clear impacts were limited due to a lack of specific details. Concurrently, the strengthening U.S. dollar affected metal pricing dynamics. Overall, the metals market reflects varied trajectories across different commodities amidst these developments.
Original Source: www.tradingview.com
