Copper prices rose in London on Thursday, rebounding from a six-week low hit in the previous session, as a softer dollar made greenback-priced metals cheaper for holders of other currencies.
Three-month copper on the London Metal Exchange (LME) rose 0.5 percent to $8,311.50 per metric ton while the most-traded March copper contract on the Shanghai Futures Exchange fell 0.3 percent to 67,730 yuan ($9,412.17) a ton.
The dollar index eased from a one-month peak versus major peers.
However, copper is still on track for the fourth straight week of losses on both bourses, weighed down by a strong dollar as bets of US rate cuts receded.
On the COMEX, short positions on copper shot up in the first week of 2024, and money managers turned net short on copper by Jan. 9 for the first time since Nov. 14 last year, latest data showed.
“The dollar’s upside is largely driven by weakening expectations of an early cut from the Fed this year. We expect this narrative to continue into Q2 2024, keeping base metals trading at the lower end of recent ranges,” broker Sucden Financial said in a note.
LME aluminum rose 0.4 percent to $2,186 a ton, zinc advanced 0.4 percent to $2,476, while nickel fell 0.2 percent to $16,055, lead eased 0.1 percent to $2,063, and tin edged down 0.1 percent at $25,215.
SHFE aluminum eased 0.5 percent to 18,775 yuan a ton, nickel shed 0.3 percent to 127,220 yuan, zinc dropped 1.6 percent to 20,860 yuan, while lead rose 0.1 percent to 16,230 yuan and tin was almost unchanged at 213,290 yuan.
