Copper climbs over 1% as dollar dips

Copper prices rose during Friday’s trading amid a decline in the US dollar against most major currencies and ongoing concerns over the tariffs announced by US President Donald Trump on the industrial metal.

According to a note from ANZ Bank analysts reported by Reuters, they stated that Trump’s announcement of a 50% tariff on copper imports would push the US market to rely on domestic inventories in the short term, which would put pressure on copper prices on both the COMEX and London Metal Exchange.

Data released on Wednesday showed that copper inventories at the London Metal Exchange rose by 10,525 tons to 121,000 tons, as eight Hong Kong-based LME warehouses officially began operations this week.

Protesters in Peru—the world’s third-largest copper producer—ended a blockade of a major copper transport route that had lasted more than two weeks, according to one protest leader speaking to Reuters on Tuesday evening.

Meanwhile, Rio Tinto announced on Wednesday a 9% increase in its quarterly copper production and projected that its annual output would be at the upper end of its forecast range. Antofagasta also reported an 11% rise in its copper production during the first half of the year.

In another development, the pace of copper inflows into the United States from traders preparing for the tariffs has slowed, following the announcement of a 50% tariff set to take effect on August 1.

On the other hand, the US Dollar Index fell by 0.5% to 98.2 points as of 15:58 GMT, after recording a high of 98.5 and a low of 98.1.

In US trading, copper futures for September delivery rose by 1.2% to $5.57 per pound as of 15:56 GMT.