FX.co ★ Copper Declines from 3-Month High

Copper futures in the United States decreased to $5.09 per pound, retreating from the three-month high of $5.17 reached on October 29th. This decline was primarily attributed to the strengthening of the US dollar and uncertain demand prospects, which temporarily overshadowed increasing concerns about supply constraints. As the dollar appreciated, credit-sensitive manufacturers faced a less favorable outlook, especially after Federal Reserve Chairman Powell dismissed the possibility of a rate cut in December, thereby exerting pressure on base metals. Concurrently, Presidents Trump and Xi took expected steps to ease trade barriers between the US and China. Nevertheless, US copper futures remained significantly higher for the month and hovered near record levels at the London Metal Exchange (LME) due to a series of adverse supply disruptions. Leading mining companies, such as Glencore and Anglo American, reported reduced output in the year's first nine months. Amid these developments, consumers were also considering alternative sources following a fatal mudslide at a Freeport-McMoRan mine in Indonesia, which interrupted operations contributing over 3% to the global copper supply.