(Jan 12): Copper rose toward a record, as base metals opened the week in bullish form, aided by concerns over supplies and a weaker dollar.
Three-month futures rose as much as 1.5% to US$13,195 a tonne in London, as aluminium and tin traded at the highest levels since 2022. The red metal used in wires and cables has gained more than 20% since mid-November on bets that a flow of metal to the US — ahead of the Trump administration’s decision on import tariffs — will leave the rest of the world short of supply.
Investors were also grappling with the implications of the US Justice Department threatening the Federal Reserve with a criminal indictment which Chair Jerome Powell said was part of a campaign by the Trump administration to influence interest-rate decisions. The dollar fell, boosting commodities.
Metals have enjoyed a strong rally over the New Year period, with the catch-all LMEX Index posting four weekly gains, the best run since August. Investors have been piling into hard assets seen as possible winners from US monetary easing, a weaker dollar and the fracturing of supply chains. Copper hit a fresh peak last week, while aluminium and nickel both surged on Friday.
Copper holdings in Comex-tracked warehouses — one barometer of shifts in global holdings — have expanded for 42 weeks straight to a record.
Copper was 0.9% higher at US$13,116.50 a tonne on the London Metal Exchange at 11.14am in Shanghai. Among other metals, aluminium was up 0.7%, set for the highest close since April 2022 in the aftermath of Russia’s invasion of Ukraine. Tin rose more than 3%, taking gains since the start of the year to 16%.
See also: Iron ore gains as restocking, hot-metal output lifts sentiment
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