On Friday, copper experienced a modest rise as the dollar retreated; however, the metal is on track for a weekly decline influenced by sluggish Chinese economic data and the overall strength of the greenback.
The London Metal Exchange’s (LME) three-month copper inched up by 0.1% to $8,317.50 per metric ton by 0333 GMT, while the most-traded March copper contract on the Shanghai Futures Exchange (SHFE) saw a 0.2% increase to 67,810 yuan ($9,423.29) per ton. Notwithstanding the daily uptick, both contracts are poised for their fourth consecutive weekly decline.
The dollar’s slight decline on Friday contributed to the rise in copper prices, making greenback-priced metals more affordable for holders of other currencies. Nevertheless, the dollar is on track for its second consecutive weekly gain, propelled by signs of resilience in the U.S. economy and cautious sentiments regarding potential rate cuts from central bankers.
In the broader base metal sector, LME aluminum saw a 0.2% increase to $2,168.50 per ton, nickel rose 0.5% to $16,235, lead advanced 0.5% to $2,087, and tin recorded a 0.4% gain at $25,460, while zinc experienced a 0.1% decline to $2,460.50.
On the SHFE, aluminum fell by 0.3% to 18,705 yuan per ton, zinc declined 0.7% to 20,700 yuan, nickel increased 0.9% to 128,340 yuan, lead advanced 1.1% to 16,390 yuan, and tin edged up by 0.4% to 213,860 yuan. Notably, tin stands out as the only metal in the base metal sector set for a weekly gain on both the LME and SHFE.
Analyst Tom Langston from the International Tin Association pointed out, “Despite a partial resumption of mining in Wa State (in Myanmar), tin mines remain closed in the lead-up to the Lunar New Year. Meanwhile, focus intensifies on Indonesia’s upcoming presidential election, with potential implications for tin export policy.”
