LONDON- Copper prices rose on Friday but were still on track for a weekly fall as investors worried about slowing economic growth and China’s yuan weakened, making dollar-priced metals costlier for buyers in the world’s biggest commodities market.
Benchmark copper on the London Metal Exchange (LME) was up 0.6 percent at $7,772.50 a ton but down about 1.1 percent this week.
Prices of the metal used in the power and construction industries have tumbled 30 percent from a peak in March but have held around $7,500-$8,000 since July.
“Pushing copper down are currency dynamics coming from a stronger dollar and a weaker yuan,” said GianclaudioTorlizzi, a partner at consultants T-Commodity.
However, he added that tight supply in China would keep prices around current levels.
“China’s economy remains weak and is still not offering any good reason to go long metal. But it is very risky to go short,” he said.
The yuan has fallen by about 3.5 percent against the dollar in the past month. On Friday it slipped past the psychologically important level of 7 yuan to the dollar for the first time in two years before recovering somewhat.
