Copper prices led other base metals higher on Friday as a weaker dollar offered support, while equity markets stabilised after Thursday’s sharp selloff in technology stocks, improving risk appetite for growth-dependent metals.
Benchmark three-month copper on the London Metal Exchange rose 0.3% to US$14,384 ($20,708) a tonne by 16:00 GMT, recovering from a near two-week low of US$14,256 touched on Thursday.
The annual LME Week gathering in London next week for metals consumers, producers, traders and brokers coincides with the third Wednesday of the month, when monthly LME contracts expire.
Copper, zinc, and aluminium are heading into next week in backwardation, with cash contracts trading at a premium to three-month contracts, a structure that points to some tightness for nearby supply.
“The real tightness in refined copper this year has been due to refined metal continuing to flood into the US ahead of anticipated tariffs to come in January next year,” Ian Roper, metals researcher at brokerage Marex, said in a presentation.
However, Roper expects copper to come under pressure towards year-end as the window for shipments to clear US customs before the end of the year begins to close in early December, freeing up some metal for markets outside the US.
Copper is up 16% so far this year, having hit a record high of US$14,875 five weeks ago.
LME aluminium rose 0.5% to US$3,001 a tonne. Analysts expect this market to swing into a surplus in 2027 due to new supply from Indonesia and a recovery in flows from the Gulf smelters.
Zinc gained 0.7% to US$3,690.50. Roper said rising Chinese exports would weigh on zinc prices in the coming months.
Nickel added 0.7% to US$15,325, having touched US$15,070 on Thursday, its lowest level in nearly 10 months. Around these levels, higher production costs in top producer Indonesia provide support, Roper said.
Lead climbed 0.4% to US$1,887, while tin advanced 0.3% to US$50,240.
(Reporting by Polina Devitt; Additional reporting by Ashitha Shivaprasad; Editing by Jochelle Mendonca and Devika Syamnath)
Main Image: Edison Elm
