Copper gives up gains as the greenback strengthens to highest in 13 months

LONDON — Copper fell on Friday and recorded its second weekly decline as the dollar powered to a 13-month high on concerns over the ripple effects of a slide in the Turkish lira, while global trade disputes continued to sap demand.

London Metal Exchange (LME) copper closed down 0.5% at $6,190 per ton, ending the week nearly half a percent down.

The dollar index, which took its cue to climb from concerns over the plunging Turkish lira and the Russian rouble, was later bolstered by US inflation data that cemented expectations for two more interest rate hikes this year.

The US currency has also been boosted by a standoff over trade tariffs between China and the United States, making dollar-denominated commodities cheaper for non-US firms.

“The dollar is looking really strong and that makes me worry that metals will fall further,” said FOREX.com analyst Fawad Razaqzada.

Meanwhile, US President Donald Trump said he had imposed a 20% duty on aluminum and 50% on steel imports from Turkey.

“Turkish exports of aluminum products to the US are negligible, therefore doubling US imports duties on Turkish imports of aluminum will have a little impact on the aluminum market,” said Wood Mackenzie Senior Research Analyst Kamil Wlazly.

Aluminum was the only metal to end the session higher, up 1.3% to $2,105 per ton and recording its biggest weekly gain since the week ending May 4.

The union at BHP’s Escondida copper mine, the world’s largest, says the company must improve its contract offer during a final phase of talks if it hopes to avoid a strike, while the main union at Lumina Copper’s Caserones mine said a last round of labour negotiations had broken down and a strike was imminent.

In LME-registered warehouses, on-warrant copper stocks available to the market were steady at 228,800 tons.

China’s move to impose a 25% import tariff on scrap copper from the United States, one of its biggest suppliers of the material, “is likely to see China importing more refined metal,” ANZ said in a note.

The dollar rose after US data pointed to a steady increase in inflation pressures that keeps the Federal Reserve on track to gradually raise interest rates.

On-warrant stocks of aluminum in LME-registered warehouses have fallen to 831,675 tons, the lowest since 2007, supporting prices.

Among other industrial metals, lead fell 0.5% to $2,098, tin inched down 0.4% to $19,500, zinc was down 2.6% to $2,547 and nickel fell 0.4% to 13,820. —