Stronger Dollar and Rising Stocks Nudge LME Copper Lower

Key Moments

Dollar Strength and Holiday-Thinned Trading Weigh on Copper

LME copper prices eased on Thursday following a strong advance in the prior session, as a firmer U.S. dollar and subdued demand from China, alongside rising inventories, pressured the market.

Benchmark copper on the London Metal Exchange (LME) was 0.2% lower at $12,879.50 a metric ton as of 0344 GMT, after climbing 2.3% on Wednesday. The move came as the U.S. dollar reached its highest level in more than a week.

Trading volumes remained muted with the Shanghai Futures Exchange shut for the Lunar New Year holidays until February 23, limiting participation from a key metals market.

“With China and Hong Kong closed, it’s not surprising that (copper’s) basically not doing anything and waiting for liquidity to come back,” said Ilya Spivak, head of global macro at Tastylive, adding that a firm dollar was also pressuring prices slightly.

Fed Minutes Support Dollar, Add Pressure to Metals

The dollar retained its recent gains after minutes from the Federal Reserve indicated policymakers were not in a hurry to cut interest rates, and that several officials remained open to further rate increases if inflation stayed persistent.

A stronger U.S. currency generally weighs on base metals by making dollar-denominated contracts more expensive for buyers using other currencies.

Copper Inventories and DRC Marketing Deal in Focus

Copper stocks held in LME-approved warehouses rose by 3,025 tons to 224,650 tons on Tuesday, marking the highest level since March 2025. The build in inventories added another headwind for prices against a backdrop of muted demand from China.

On the supply side, the Democratic Republic of Congo reached an agreement to tender copper from a major Glencore operation in the country, according to a Bloomberg News report on Wednesday.

DRC’s state miner Gecamines has obtained rights to market about half of Kamoto Copper Company’s output – controlled by a Glencore subsidiary – for at least the next two years, and 30% of production thereafter, the report said, citing people familiar with the matter.

Broader LME Metals Performance

Price moves in other base metals were mixed.