Copper price rises despite fears of slowing demand and rising inventories
The copper price rose on Friday despite fears of slowing demand in China and rising inventories.
Copper for delivery in July was up 1% on the Comex market in New York, touching $3.75 per pound ($8,250 per tonne).
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Despite a drop in prices at the beginning of the day, funds taking profits on short positions after the recent slide helped the metal to recover later in the session.
“The market is on pause, but the bears are still in control,” said Al Munro, base metals strategist at Marex.
Munro added that physical demand was weak and that short-term direction for industrial metals would be determined by macro events and the dollar.
A rising US currency makes dollar-priced commodities more expensive for buyers with other currencies.
Copper stocks in LME-registered warehouses have climbed 50% to 76,625 tonnes since April 18, reinforcing the picture of languishing demand.
(With files from Reuters)