Copper edged down on Thursday, but held above the psychological $14,000-a-metric ton level, as higher inventories on the London Metal Exchange (LME) relieved supply concerns and offset support from sharp falls in the dollar. Benchmark three-month copper on the LME was down 0.26% at $14,013.5 a metric ton by 0703 GMT. The most-traded copper contract on the Shanghai Futures Exchange edged 0.21% higher to 107,200 yuan ($15,943.13) a ton. On warrant copper stocks, meaning metal not already marked for warehouse removal, on the LME rose by more than 35,000 tons on Wednesday, exchange data showed. The rise relieved some supply concerns raised by outflows to U.S. warehouses driven by its potential introduction of tariffs on refined copper. Available stocks on the LME have risen by more than 50% since the start of the week, but are still less than half their levels three months ago. Despite narrowing from its widest since 2021 earlier in the week, the LME cash-to-three month copper spread was most recently at $280 a ton in backwardation, suggesting lingering concerns around material availability. "The market remains vulnerable after months of inventory outflows, driven partly by the diversion of metal to the US ahead of expected tariffs," analysts at ING wrote in a note. The dollar fell to a level near its lowest in three months as FX investors digested measures announced by the U.S. Treasury Department to help calm the bond market. The decline helped copper rebound from a two-week low on Wednesday.
A softer U.S. currency usually boosts prices for dollar-denominated commodities by making them cheaper for buyers using other currencies. Among LME metals, aluminium lost 0.77%, zinc lost 0.47%, lead dipped 0.11%, nickel lost 0.75% and tin added 0.32%. Among SHFE metals, aluminium lost 0.61%, zinc dipped 0.28%, lead was little changed, down only 0.03%, nickel gained 0.9% and tin gained 1.39%.
