Overview of Copper Market Performance
On Friday, copper reached a 16-month high and concluded its best week in nearly six months. This surge was driven by supply constraints and a weaker US dollar, pushing prices upward.
Copper’s Performance
- Three-month copper on the London Metal Exchange (LME) increased by 2.2% to $10,719 per tonne.
- The metal is on track for a weekly gain of 5.3%, marking its best week since September 2024.
- Copper touched a high of $10,765 per tonne, the highest level since May 2024.
Expert Insights
Ole Hansen, Head of Commodity Strategy at Saxo Bank, explained that the focus is on supply constraints and potential delays in recovery. “The market hasn’t looked back since surpassing the $10,160 per tonne resistance last week,” he added.
Inventory Levels
Copper inventories in the LME warehouse system have plummeted to just over 140,000 tonnes, the lowest level since early August.
Copper Prices in the US
In the United States, copper prices on the Comex exchange rose by 3.22% to $5.11 per pound, crossing the $5 per pound threshold for the first time since late July.
Impact of Dollar Weakness
The weakening US dollar also supported copper prices, making metals more affordable for holders of other currencies.
Tin’s Performance
Tin continued its recent upward trend, rising by 2.2% to $37,695 per tonne, the highest level since April 2nd.
Key Questions and Answers
- Q: Who is Ole Hansen and why is he relevant? A: Ole Hansen is the Head of Commodity Strategy at Saxo Bank. His insights on copper market dynamics are crucial as he provides expert analysis on supply constraints and price movements.
- Q: What are the factors driving copper prices upward? A: Supply constraints and a weaker US dollar have contributed to the rise in copper prices.
- Q: How have inventory levels affected the copper market? A: Low copper inventories in LME warehouses have supported price increases due to limited supply.
- Q: What is the significance of copper prices crossing the $5 per pound threshold in the US? A: This milestone indicates increased affordability for copper, potentially boosting demand from buyers holding other currencies.
- Q: How has tin performed recently? A: Tin has experienced a 2.2% increase, reaching its highest level since April 2nd.
