A weak dollar and US job data boost copper prices

Several factors contributed to copper’s strong performance during yesterday’s trading session, which saw it close up 1.11% at 855.3. A weaker dollar aided the upward momentum after the release of negative U.S. jobs data and projection revisions indicating a reduction in supply due to mining disruptions.

Concerns about supply were raised by the International Copper Study Group’s dramatic decline in its prediction of a worldwide surplus this year, the closure of the largest open-pit copper mine in the world, Cobre Panama, and power outages that affected important mines in Zambia.

The positive demand picture for copper is maintained on the supply side by its crucial function in electrification projects, which points to long-term sustainable demand.

The Federal Reserve indicated that it was leaning towards eventually lowering interest rates, but it also emphasized the need to have “greater confidence” in the inflation trajectory before cutting rates, suggesting that monetary policy adjustments should be made carefully. Surprisingly, Chinese copper producers intend to export up to 100,000 metric tonnes of metal, which would be the highest amount in 12 years, against increased demand and supply disruptions.

Leave a Reply

Your email address will not be published. Required fields are marked *