London copper set for weekly loss as inventories rise, dollar firms

London copper looked set to log its third consecutive weekly loss, even as it inched higher on Friday, as global inventories rose amid weak China demand and a firmer dollar. London Metal Exchange benchmark copper was up 0.3% at $12,842.50 a metric ton as of 0351 GMT but was headed for a 0.3% weekly loss. The Shanghai Futures Exchange, closed for the Lunar New Year holidays, will reopen on February 24. "Copper and the rest of the LME base metals complex are showing a bit of spine today, clawing back some ground despite a firmer dollar. There is an element of short-covering which is assisting prices to the upside," said KCM Trade chief market analyst Tim Waterer, referring to sellers turning buyers of the red metal. The dollar was poised on Friday to cap its strongest weekly performance since October, after a run of better-than-expected economic data and a more hawkish Federal Reserve outlook. A stronger dollar usually makes greenback-priced metals more expensive for those trading with other currencies. Meanwhile, copper stocks in LME-approved warehouses increased by 925 tons to 225,575 tons on Thursday , the highest since March 2025. CME Group has received an application to list a copper warehouse in a suburb of Chicago, a notice from the U.S. commodity exchange operator shows, as the prospect of tariffs has led traders to stockpile. "We see key support on 3-month copper at two levels – $12,528/ton and 12,414/ton – the latter being the more critical level that needs to hold," said Marex analyst Edward Meir in a note. Elsewhere, zinc prices ticked up 0.4% to $3,351.50, and nickel was steady at $17,285 a ton. "Mine disruptions in Chile and Peru, and growing signs that new projects won't come online fast enough to meet demand, are propping up base metals," Waterer said, adding that low inventories and mine closures and delays underpinned prices for nickel and zinc. Aluminium rose 0.5% to $3,082.50, while lead lost 0.2% to $1,950.50.