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HomeMiningCopper prices soar to highest in five months

Copper prices soar to highest in five months

COPPER prices on Friday climbed to their highest in nearly five months, as United States of America (US) inflation data bolstered hopes for a slower pace of interest rate hikes in the world’s largest economy that would support industrial metals demand.

According to Reuters,the softer-than- expected data also sent the dollar sharply lower overnight as a weaker dollar makes greenback-priced metals cheaper for buyers holding other currencies.

Three-month copper on the London Metal Exchange (LME) was up by one per cent to trade at $8 354.5 a tonne, as of 02:12 GMT, hitting the highest since June 16,2022.

It stated that the most-traded December copper contract on the Shanghai Futures Exchange advanced 1.8 percent to a four-month high at 67,830 yuan ($9445.89) a tonne.

US consumer prices rose less than expected in October, pushing the annual increase below eight per cent for the first time in eight months, the strongest signs yet that inflation was slowing. which would allow the Federal Reserve to scale back its hefty interest rate hikes.

Sharp interest rate hikes by global central banks to tame soaring inflation have pressured risk assets this year, with copper prices down 21.8 per cent from a March high.

Among other factors supporting the copper market, global supplies remained tight and that Copper inventories on LME

warehouses dropped by 950 tonnes, trimming headline levels to 80,025 tonnes, the lowest in seven-and-a-half months.

Among other metals, tin jumped 6.4 per cent to 179,270 yuan a tonne, nickel rose by four per cent to 206,170 yuan a tonne, aluminium gained one per cent to 18, 735 yuan a tonne, and zinc climbed 0.6 per cent to 23,725 yuan a tonne.

LME aluminium was up 0.7 per cent at $2,343 a tonne, zinc rose 1.2 per cent to $2,919.50 a tonne while lead dipped 0.5 per cent to $2,088.50 a tonne respectively.

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