Copper Pulls Back From Record High
Copper futures fell below $6.70 per pound on Thursday, retreating from record levels as the dollar strengthened on robust US economic data that reinforced expectations for further Federal Reserve rate hikes. A stronger dollar makes greenback-priced commodities such as copper more expensive for overseas buyers. Still, the metal remains supported by persistent supply risks, with ...
Copper prices slipped below $6.70 per pound on Thursday, marking a retreat from record highs. This decline came as the US dollar strengthened following positive economic indicators that suggested more rate hikes from the Federal Reserve. A stronger dollar makes US-priced commodities, like copper, more costly for international purchasers.
Despite this, copper retains its value due to ongoing supply concerns. BHP Group, a major mining company, reported a suspension of operations at its massive Escondida mine in Chile following a worker's death. Additionally, Sprott Asset Management warned that global mined copper production could fall for the first time since 2017.
Disruptions at key mines in Indonesia and the Democratic Republic of Congo have also reduced the anticipated annual output by around 600,000 tons. On the demand side, copper consumption remains strong across various sectors such as power grids, artificial intelligence data centers, and the defense industry. Furthermore, recent gains in technology and AI stocks have bolstered the outlook for copper demand. The information was sourced from Trading Economics.
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