HBM - Copper prices pop to three-week highs as dollar drops

2023-07-13 10:25:30 ET

Copper prices climbed to three-week highs Thursday, with the U.S. dollar easing after posting its biggest decline in five months in the previous session, with surprisingly slow U.S. inflation data sparking hopes the Federal Reserve could begin to wind down its interest rate hikes.

June CPI rose by a smaller than forecast 0.2%, while the yearly rate of inflation slowed to 3% from 4% in May, marking the mildest inflation reading since March 2021, while core CPI excluding food and energy rose 4.8%, compared with expectations for a 5% increase.

According to Reuters, most-active August copper ( HG1:COM ) on the Shanghai Futures Exchange settled +1.3% at 68,610 yuan/metric ton ($9,578.39), after reaching its highest since June 21 earlier in the session at 68,710 yuan.

Benchmark three-month copper on the London Metal Exchange recently traded +0.4% to $8,537/metric ton, after hitting $8,542, also its best level since June 23, earlier in the session.

ETFs: ( NYSEARCA: CPER ), ( NYSEARCA: COPX ), ( JJC ), ( JJCTF )

Freeport McMoRan ( NYSE: FCX ) +3% and Southern Copper ( SCCO ) +3.2% in Thursday's trading; other potentially relevant stock tickers include ( TECK ), ( HBM ), ( BHP ), ( RIO ), ( ERO ), ( OTCPK:FQVLF ), ( OTCPK:LUNMF ), ( OTCPK:CSCCF )

Copper inventories in LME warehouses totaled 54,450 metric tons, the lowest since April 21.

Aluminum, zinc and lead also traded higher in London, while nickel and tin were lower.

More on Freeport McMoRan:

• Financial and valuation comparison to sector peers
• Analysis: Freeport McMoRan: Copper Giant With Potential For The Energy Transition
• Stock price return: Up 9.5% YTD, up 56% in the past 12 months

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