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Copper recorded its biggest weekly advance in year, with prices edging closer to a record set last year, as supply disruptions, a weaker US dollar and optimism about demand support gains.
Three-month futures on the London Metal Exchange rose 5.2% for the week, the biggest weekly advance since late September last year. Copper climbed 2.1% on Friday alone, settling at $10,715 a ton — less than $400 shy of an all-time high.
Copper has surged by 22% this year, despite concerns that the US-led trade war would restrain global growth. The ascent has come as the Federal Reserve resumed cutting interest rates, hurting the dollar and making commodities priced in currency more attractive for non-US buyers. At the same time, there’s optimism about demand for the metal for use in the energy transition, as well as in data centers to support artificial intelligence.
Most recently, copper’s rally has been aided by a series of supply setbacks, including Freeport-McMoRan Inc.’s declaration of force majeure at the giant Grasberg mine in Indonesia last month.
Other base metals also did well this week. Zinc climbed 5%, touching the highest level this year on Thursday. Tin, meanwhile, jumped 8.6% amid concerns about supplies from Indonesia.
(By Annie Lee and Jack Ryan)