Copper Prices Rise As Limited Supply And Weaker Dollar

LONDON:After two days of decline, copper prices in London rose on Wednesday due to signs of limited supply and a weaker dollar, making the metal more appealing to buyers using other currencies.

Investors made adjustments for the possibility of longer periods of higher interest rates following statements made by Federal Reserve Chairman Jerome Powell on Tuesday and Wednesday. As a result, the dollar dipped slightly from three-month highs earlier in the day.

By 1640 GMT, benchmark copper on the London Metal Exchange (LME) was up 1.6 percent at $8,903.0 per tonne, after losing 2.4 percent the previous two days

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Amalgamated Metal Trading’s head of research, Dan Smith, stated, “The copper market is still quite tight on the supply side.” Although Peru’s supply has been increasing, the copper prices concentrate market remains tight. Mines in Peru, the world’s second biggest copper maker, are beginning to ship their copper concentrate to ports for send out following three months of fights that have growled shipments, its true informed Reuters recently.

However, some local communities threatened to re-block the crucial Peruvian highway used by copper producers this week.

In Panama, a country that also produces copper, the government and Canada’s First Quantum Minerals reached an agreement on a draft contract to run a crucial mine. The public consultation period for the draft is 30 days, but the mine is expected to resume ore processing within the next few days.

LME three-month aluminum prices increased by 0.2 percent to $2,354 per tonne. Sucden Financial wrote in a note about aluminum that “alluminium smelters in [China’s southwestern province of] Yunnan are said to have completed necessary production cuts, and we will start to pay close attention to production in the region in the coming weeks.”