Copper Prices Surge to New Heights Amid Dollar Strength

In a remarkable turn of events, copper prices in London reached a five-month peak on Thursday, soaring past the significant threshold of $10,000 per metric ton before experiencing a slight pullback due to a stronger dollar. The benchmark three-month copper contract on the London Metal Exchange (LME) dipped by 0.1% to $9,975 per ton after touching $10,046.50, the highest level since early October.

Factors Driving Copper Prices

The upward trend in copper prices can be attributed to robust activity in the May copper futures on the U.S. Comex exchange. These futures rose by 0.5% to $5.125 per pound, previously hitting a ten-month high of $5.1485. Notably, the premium for the most active Comex contract surged to a record $1,342 per ton earlier this week, settling at $1,319 as discussions around new tariffs on copper continue to unfold.

• Key Highlights:
  • London copper prices peaked at $10,046.50.
  • Comex copper futures reached a high of $5.1485.
  • Premiums on Comex contracts set a record of $1,342.

Impact of Tariffs on Copper Supply

The recent introduction of 25% tariffs on steel and aluminum products by the U.S. government has intensified the copper market dynamics. According to a source from a U.S. warehouse operator, this tariff threat has led to an influx of copper imports into the United States. Analysts at ING have noted that this anticipated surge is tightening supplies in various regions, exacerbating the situation.

• Stock Updates:
  • Comex copper stocks fell by 7.5% since mid-February, totaling 93,154 tons.
  • LME copper stocks dropped to 223,275 metric tons, the lowest level since mid-July.

Other Metals on the Move

In addition to copper, other metals also saw fluctuations. LME aluminum increased by 0.5% to $2,682.50 per ton, while zinc edged up 0.1% to $2,926.50. Daily LME data indicated significant cancellations, with 60% of total stocks affected for both metals, suggesting a shift in market dynamics.

• Metal Performance:
  • Aluminum: +$2,682.50/ton
  • Zinc: +$2,926.50/ton
  • Lead: -$2,065.50/ton
  • Tin: -$34,815/ton
  • Nickel: -$16,355/ton

Conclusion

As the copper market continues to react to global economic signals and tariff implications, the interplay between supply and demand will remain critical. Stakeholders are encouraged to monitor ongoing developments closely, as the situation evolves and could significantly impact future pricing trends.

This evolving landscape highlights the importance of staying informed about market changes, especially for investors and industry players.