Copper rebounds on bargain hunting amid softer dollar, firmer risk appetite

Copper prices bounced on Thursday after two days of heavy losses, as investors swooped in on bargain prices while a slightly weaker dollar and optimism across wider financial markets also helped. London Metal Exchange's benchmark three-month copper gained 1.1% to $13,230 a metric ton in official open-outcry trading, after giving up more than 4% during the previous two sessions. "Copper is recovering after a steep sell-off earlier this week, supported by a softer dollar and improved risk appetite," said Ewa Manthey, commodities strategist at ING. Globally, stocks surged after strong earnings and forecasts from chip giants Micron and Qualcomm helped reignite the AI rally. Metals were also supported by a slightly weaker dollar index , which hit a 13-month peak on Wednesday ahead of U.S. inflation data that could support the growing belief among investors that interest rates will be hiked at least once this year. A weaker dollar makes commodities priced in the U.S. currency cheaper for buyers using other currencies. Sentiment, however, was cautious, Manthey added. "The broader macro backdrop remains challenging, with higher-for-longer U.S. rate expectations weighing on industrial metals more broadly." LME aluminium rose 0.7% in official activity to $3,144 a ton after having given up the last of its gains due to the U.S.-Iran war in the previous session. The decline "highlights how quickly the market has repriced once energy concerns eased and the narrative shifted from disruption to normalisation," analysts at Sucden Financial wrote in a note. The most-traded aluminium contract on the Shanghai Futures Exchange shed 2.6% to close daytime trading at 22,865 yuan ($3,360.82) a ton, having earlier dropped to its lowest in 2026. LME nickel dipped 0.1% to $16,810 a ton after top producer Indonesia said it had not yet decided its nickel production quota for 2026 amid speculation the cap would be increased. Among other metals, LME zinc added 0.1% to $3,424.50 a ton, lead rose 0.3% to $1,919.50 and tin advanced 1.2% to $50,250.