Copper prices rose slightly in London after news of China’s plans to increase strategic reserves of metals, including copper. Trading metrics indicate a cautious market response due to unclear specifics around these plans. The overall strength of the U.S. dollar continues to affect metal pricing globally.
Copper prices observed a modest rise in London on Friday, approaching the significant threshold of $10,000 per metric ton. This increase follows a media report indicating China’s intentions to augment its strategic reserves of essential industrial metals, including copper, cobalt, nickel, and lithium. The National Food and Strategic Reserves Administration is reportedly investigating prices and potential bidding for these metals, as reported by Bloomberg News. However, specific details regarding the volumes or timing remain undisclosed.
As of 0303 GMT, benchmark three-month copper on the London Metals Exchange was valued at $9,970 per metric ton, reflecting a 0.3% increase. A trader commented, “The strategic buying news does not significantly impact metal prices today due to a lack of details.” Meanwhile, the U.S. dollar gained strength, influenced by the Federal Reserve’s stance on maintaining interest rates, causing further market dynamics affecting commodity pricing.
The dollar index improved by 0.03, reaching 103.82 as of 0238 GMT, having increased by 0.36% the previous day. A robust U.S. dollar tends to elevate the costs of dollar-denominated metals for international buyers, potentially impacting demand. Other metals also responded: aluminium rose 0.3% to $2,666 per ton, lead increased by 0.1% to $2,057.5, and zinc saw a gain of 0.5% to $2,932, while tin experienced a slight decline of 0.1% to $35,310, and nickel prices dropped 2.0% to $16,240 per ton.
In the Shanghai Futures Exchange, copper climbed 0.2% to 81,540 yuan ($11,252.64) per ton, while aluminium remained unchanged at 20,845 yuan. Zinc rose by 0.6% to reach 23,895 yuan, lead fell by 0.5% to 17,590 yuan, nickel decreased by 0.3% to 129,890 yuan, and tin saw a gain of 1.0% to 281,620 yuan.
In summary, copper prices have experienced a slight increase due to anticipated expansions in China’s stockpiling of industrial metals. While this strategic buying may signal future demand, the lack of concrete details has muted immediate impacts on metal prices. The strength of the U.S. dollar further complicates global pricing dynamics, influencing costs for foreign buyers across various metals.
Original Source: www.tradingview.com
