Copper Gains as Dollar Weakens

Copper futures fell to around $6.55 per pound on Tuesday, hitting a two-week low as investors locked in profits after the metal surged to record highs earlier this month. The broader metals market also remained under pressure from rising oil prices, which kept inflationary risks and interest rate concerns in focus. The moves came as prospects for a new agreement between the US and Iran dimmed after President Donald Trump said he was not interested in extending the interim peace deal. Meanwhile, signs of tightening global copper supply continued to provide a floor for prices, as the metal keeps flowing to the US and China while becoming increasingly scarce elsewhere. Top producer Chile also expects copper production to fall 2.6% this year amid persistent setbacks at mines and development projects.

Copper futures jumped above $6.7 per pound on Monday, moving toward fresh record highs amid further signs of tightening global supply. China’s refined copper output is expected to decline for a second consecutive month in August as persistent shortages of copper concentrate and other smelter feedstocks continue to weigh on operating rates, highlighting increasingly tight raw material availability. At the same time, tighter domestic tax-invoice regulations have reduced the availability of VAT-compliant recycled copper, limiting another key source of smelter feedstock and putting further pressure on refined output. In top producer Chile, state-owned miner Codelco reportedly expects copper production to decline this year as it faces setbacks at its mines and development projects. Traders also remained cautious about potential US import tariffs on copper, which have continued to divert metal away from international markets and into US warehouses.

Copper futures fell to around $6.55 per pound, hitting near two-week lows as elevated prices weakened demand and discouraged buyers in top consumer China. The Yangshan premium, which reflects the premium paid above the benchmark LME copper price for refined copper imported into China, declined to $96 per ton after reaching $115 a ton last month. However, concerns over tightening supply continued to underpin prices amid expectations for constrained global mine output. Chilean state-owned miner Codelco reportedly expects lower copper production this year as it faces setbacks at its mines and development projects. The company has abandoned its previous target of producing 1.34 million metric tons this year, compared with last year’s revised output of 1.307 million tons. Traders also remained cautious about potential US import tariffs on copper, which have continued to divert metal away from international markets and into US warehouses.