COM - Copper touches seven-week high as dollar slumps stockpiles tighten

2023-04-14 07:53:26 ET

London copper prices hit a seven-week high Friday before pulling back as investors locked in profits after the metal's 3.3% gain this week, driven by a weaker dollar and tightening inventories.

The U.S. dollar slid to a one-year low against a basket of currencies after surprising data showed U.S. producer prices falling by 0.5% in March.

Copper inventories in warehouses monitored by the Shanghai Futures Exchange are down 4% this week, and copper held in warehouses registered by the London Metals Exchange has fallen to its lowest level since 2005.

According to Reuters , benchmark LME copper ( HG1:COM ) recently was +0.4% at $9,093/metric ton after reaching $9,141.50, the highest since February 23, after rising 1.6% Thursday as March trade data from China showed an unexpected surge.

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

In Chile, the world's top copper producer, production should pick up in the coming years after a recent slump, mining minister Marcela Hernando reportedly said.

Freeport McMoRan ( NYSE: FCX ) shares closed +4.8% on Thursday and have gained 13% so far this year.

Freeport McMoRan ( FCX ) is still attractive, and some analysts are predicting a very tight copper market could push the price up to $12K/ton later this year, Michael Fitzsimmons writes in an analysis published recently on Seeking Alpha .

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