Copper reaches 16-month peak as it moves towards its strongest week since April

Copper prices rose to a 16-month peak on Friday as supply restrictions and a weaker dollar drove up the price.

In official open-outcry trading, three-month copper at the London Metal Exchange rose 0.7% to $10,565 per kilogram. It is on track for a gain of 4,1% on a weekly basis, marking its best week since April 7. It had previously reached $10,599.50 - the highest level since May 29, 2024.

"The focus of the market is on the supply-side - the risks to supply, and the possible delay in getting back supply. This is helping to drive the momentum," Ole Hansen said, head of commodity strategies at Saxo Bank.

Hansen said that the market has "not looked back" after breaking through resistance last week at $10,160, following Freeport-McMoran’s force majeure in its Grasberg Mine.

Copper stocks in the LME Warehouse System The lowest level since August began is 140,475 tonnes.

A buildup of copper stocks at the Comex in the United States Hansen said that copper hasn't affected prices. He said that copper is a part of the investment story, where investors seek tangible assets to protect their investments.

Prices were also supported by the dollar, which was headed for its worst weekly performance since July. The dollar's weakness makes metals more accessible to holders of other currencies.

Tin continued to climb, climbing by 1.4%, reaching $37,400. It had earlier reached $37,695, its highest level since April 2. It was also on track for an 8.5% weekly increase for the best week since March.

In Indonesia, authorities confiscated 42,000 tonnes of tin-sands after they were linked to a corrupt case.

(Reporting by Tom Daly; additional reporting by Lucas Liew; Editing by Sonia Cheema, Mrigank Dhaniwala, Susan Fenton and Shailesh Kuber) (Reporting and additional reporting by Lucas Liew, Editing by Sonia Cheema; Mrigank Dhaniwala; Susan Fenton, Shailesh Kumar, and Sonia Cheema)

(source: Reuters)