Copper prices in London and Shanghai are set to record weekly gains as concerns over U.S. tariffs on copper imports persist and the U.S. dollar weakens. As of Friday, the three-month copper contract on the London Metal Exchange (LME) slipped by 0.19% to $9,881 per metric ton after reaching a peak of $9,913.5, the highest level since March 27. Despite this slight dip, copper prices have risen by 2.58% since the start of the week. In Shanghai, copper futures rose by 1.32% to 79,780 yuan ($11,125.83), with prices earlier hitting 79,900 yuan, the highest since April 1.
Overall, copper in Shanghai has experienced a weekly increase of 2.03%. According to a metals analyst based in Beijing, copper prices have been influenced by a weak dollar, concerns regarding U.S. copper import tariffs, and potential supply tightness. On Friday, the dollar remained low, trading near its weakest level against the euro and sterling in over three years. Market speculation around deeper U.S. interest rate cuts and pending trade negotiations before a July deadline for tariffs contributed to the dollar’s decline.
A depreciated dollar allows commodities priced in dollars, like copper, to become more affordable for foreign buyers. The premium for cash copper contracts over the three-month contracts rose to $310 a ton, the highest since November 2021, reflecting supply tightness. Meanwhile, other commodities showed mixed results: LME nickel fell to $15,170 a ton, and zinc dipped to $2,763, while Shanghai tin, aluminum, and lead saw gains. Overall, the copper market remains focused on both geopolitical and economic developments influencing prices.