LONDON: Copper prices were on track for a second consecutive weekly fall on Friday as concerns about global economic growth kept industrial metals under pressure.
The three-month copper contract on the London Metal Exchange (LME) rose 0.1% to $9,105.50 a metric ton by 1021 GMT but was down 1.3% over the week.
Copper, used in power and construction, has lost 18% since a May rally to a record high of $11,104, buoyed by speculative buying on potential shortages resulting from future demand for electric vehicles (EVs) and AI data centres.
However, slowing manufacturing activity and EV sales in top metals consumer China have prompted downgrades to copper price forecasts, with Goldman Sachs reducing its estimate to an average of $10,100 a ton for 2025, down from a previous estimate of $15,000.
“There is no new story that can pick up the price from here because everything is doom and gloom as of now,” said one copper buyer. “We went from doubting EVs to doubting the AI data centres.”
The U.S. currency weakened on Friday, making dollar-priced metals more attractive for buyers using other currencies, with investor focus on looming U.S. jobs data that could decide the size and speed of expected cuts to U.S. interest rates. The data is due at 1230 GMT.
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“The price is already at a comfortable level compared to where it was in May and talks of $15,000 estimates. But the next uptick in copper will be if the U.S. Federal Reserve cuts interest rates, especially if it cuts by 50 basis points, as this could push the dollar down and support Chinese physical buying,” the copper buyer added.
Suggesting more robust copper demand in China is the Yangshan premium, an indicator of China’s import appetite. The premium is now at $62 a ton, having swung from a discount in July.
Copper inventories in warehouses monitored by the Shanghai Futures Exchange fell 10.9% this week to their lowest since March.
In other metals, LME aluminium was steady at $2,378 a ton, zinc rose 0.7% to $2,755.50, lead eased by 0.4% to $1,987, tin jumped 1.9% to $31,325 and nickel was down 0.8% at $15,945.
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