Copper climbs on softer dollar after weak US jobs data, tight supply

By LONDON: Copper prices pushed higher on Friday, supported by a softer dollar after weaker-than-expected US jobs data and supply issues. Benchmark three-month copper on the London Metal Exchange rose 0.9percent to USD14,374.50 a metric ton by 1405 GMT. That marked a decline of about 2percent since the end of last week. 'Metals have seen light turnover again so far this session with copper finding some support with a slightly softer dollar, but the broader tone remains cautious,' Neil Welsh, head of metals at broker Britannia Global Markets, said in a note. 'High energy costs stemming from the ongoing US-Iran conflict and signs of industrial weakness in China have weighed on sentiment across the complex.' The dollar index dropped on Friday after US jobs growth slowed more than expected in September, prompting traders to reduce their bets on further US rate hikes. The dollar hit its strongest in 17 months this week, but the retreat on Friday makes commodities priced in the US currency cheaper for buyers using other currencies. LME copper has gained 16percent over the past six months, largely due to a large shift in inventories to the US attracted by the prospect of tariffs there, creating shortages elsewhere. Stocks in warehouses monitored by the Shanghai Futures Exchange have slumped by 79percent over the past four months to 38,744 tons, their lowest since January 2024. The SHFE was closed for China's National Day and will reopen on October 8. The prospect of less output in the world's largest copper producer Chile has also underpinned the market, with data on Wednesday showing production fell 12.8percent year-on-year in August. Supervisors at Chile's Escondida copper mine, the world's largest, rejected a collective contract offer, paving the way for a potential strike and adding to supply fears. Among other metals, LME aluminium rose 0.1percent to USD3,126.50 a ton and nickel gained 0.6percent to USD15,725. Zinc and tin were little changed at USD3,725.50 and USD54,315 respectively while lead ticked 0.6percent higher to USD1,868.