Copper and aluminum climb as US dollar slips

LONDON — Copper and aluminum prices rose in London on Wednesday, as support from a weaker US dollar and concerns about supply offset worries about demand from top metals consumer China.

Three-month copper on the London Metal Exchange (LME) was 1.2% higher at $9,584.5 per metric ton by 1550 GMT, reversing Tuesday declines caused by slower-than-expected China’s industrial output growth.

The metal, used in power and construction, is up 12% since the start of 2024 after its MarchApril rally drove the price to $9,640.50, the highest level since June 2022, on Monday.

The dollar edged down, but was still close to its 5-1/2-month high after US Federal Reserve officials reiterated interest rates are likely to stay higher for longer. Weaker US currency makes dollar-denominated metals more attractive to buyers using other currencies.

LME aluminium added 0.9% to $2,585 a ton. The metal touched $2,728, a 22-month high, on Monday after the US and Britain’s move to ban the LME and CME from accepting newly produced Russian aluminium.

Mining and trading house Glencore aims to take thousands of metric tons of Russian aluminum from the LME-registered warehouses and return it at a later date to profit from rule changes, sources familiar with the matter said.

Meanwhile, analysts do not expect any meaningful impact on the aluminium market from the news that US President Joseph R. Biden would call for sharply higher tariffs on Chinese steel and aluminum products.

Zinc rose 2.4% to $2,836.50; lead gained 0.1% to $2,149.50; tin was up 2.9% to $32,700; and nickel added 2.8% to $18,220. —