Copper prices rose on Friday, supported by a sharp decline in the U.S. dollar and gains across the broader metals complex, as markets temporarily looked past mounting signs of increased near-term supply.
Benchmark three-month copper on the London Metal Exchange (LME) climbed 1.2% to $12,901.50 per metric ton, after finding technical support at its 21-day moving average in the previous session. The red metal remains close to record territory, having hit an all-time high of $13,407 per ton on January 14.
The U.S. dollar is heading for its largest weekly decline since June, pressured by rising geopolitical tensions and sudden policy shifts related to Greenland that have unsettled investors. A weaker dollar typically enhances the appeal of dollar-priced commodities, making metals cheaper for buyers using other currencies.
This currency-driven support helped copper prices shrug off near-term concerns over rising supply availability.
On the supply front, Capstone Copper said a labor strike forced it to suspend production at its Mantoverde mine in Chile, offering additional support to prices.
However, offsetting that disruption, Freeport-McMoRan said it expects around 85% of production at the giant Grasberg mine to return by the second half of this year, signaling a potential rebound in global copper supply.
On the demand side, record copper output in China in December, combined with elevated prices, weighed on import appetite. The Yangshan copper premium, a key gauge of China’s demand for imported copper, remained steady at $22 per ton, its lowest level since mid-2024.
The price gap between U.S.-traded copper contracts and LME prices narrowed sharply this week, prompting deliveries into U.S.-registered warehouses. Meanwhile, copper inventories in Shanghai Futures Exchange-monitored warehouses rose 6%, reinforcing signs of increased availability.
In a further indication of ample nearby supply, the spread between LME cash copper and the three-month contract shifted into a discount of $83 per ton, the widest since September. This compares with a premium of $102 per ton recorded as recently as Tuesday.
Base metals posted broad gains:
Aluminum rose 0.1% to $3,135.50 per ton
Zinc gained 0.3% to $3,221 per ton
Lead advanced 0.2% to $2,023.50 per ton
Nickel jumped 3.1% to $18,545 per ton
Tin surged 3.3% to $53,400 per ton
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