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London Copper Prices Rise as Strong Dollar Limits Gains

London Copper Prices Rise as Strong Dollar Limits Gains

Copper Prices Edge Higher in London

Copper prices in London saw a slight increase on Tuesday. The market reacted to expectations of rising copper supplies heading to the U.S. However, a stronger U.S. dollar limited gains. The benchmark three-month copper on the London Metals Exchange (LME) gained 0.2%, reaching $9,975.5 per metric ton.

U.S. Tariff Concerns Impact Market Sentiment

Recently, U.S. President Donald Trump initiated an investigation into potential tariffs on copper imports. The goal is to boost domestic production of this crucial metal. Copper plays a key role in electric vehicles, military equipment, and the power grid. Traders are closely monitoring developments on this issue. Any changes in tariffs could significantly impact the copper market.

China Smelters Meeting Draws Attention

Another critical event for copper markets is the upcoming China Smelters Purchase Team (CSPT) meeting. Scheduled for next Monday, this meeting will determine the buying floor price for Q2. Analysts expect discussions on potential production cutbacks, which could influence supply levels.

Stronger Dollar Limits Copper's Gains

On Tuesday, the U.S. dollar hit a three-week high against the Japanese yen. A strong dollar makes commodities priced in USD more expensive for international buyers. This limited copper’s gains despite rising demand expectations. Strong U.S. services data also supported the dollar’s strength, adding pressure on metal prices.

Other Metal Prices Show Mixed Trends

Beyond London copper prices, other base metals experienced mixed movements on the LME. Aluminium eased slightly, while lead, zinc, tin, and nickel posted small gains. In the Shanghai Futures Exchange (SHFE), copper prices jumped 0.9%, showing strong demand in China. Meanwhile, SHFE aluminium and tin recorded slight losses.

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London Copper Prices Rise as Strong Dollar Limits Gains

London copper prices edged higher, but a strong U.S. dollar limited gains. Market focus remains on U.S. tariffs & China's upcoming meeting.

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DANIEL JOHN GRADY
Author

Daniel John Grady is a financial analyst and writer. He is a former CFO with a degree in Financial Management and has been published in both English and Spanish. With over ten years of equities trading experience, he is primarily interested in foreign exchange and emerging markets with a focus on Latin America.

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