Copper continued to decline after reaching the maximum. The acceleration of inflation in the United States has reduced the likelihood of rate cuts, and the strengthening of the dollar has made the "red metal" more expensive.
Bloomberg writes that the cost of copper decreased by about 3% compared to the close of the session on May 13. This came after an eight-day surge driven by mining disruptions and a rally in technology stocks that fueled optimism that the boom in artificial intelligence was driving demand for copper used in electrical wiring and renewable energy.
The Bloomberg dollar index jumped 1% this week, while wholesale and consumer inflation in the United States soared to multi-year highs. The closure of the Strait of Hormuz has led to an increase in energy prices, leading to a tightening of monetary policy around the world. Shuohe Asset Management Co analyst Gao Yin noted that metal prices fell due to the strengthening of the dollar and rising yields on U.
S. Treasury bonds, indicating a weakening of expectations for rate cuts. According to her, copper prices may fluctuate this quarter without any noticeable shift in the balance of supply and demand.
In China, the world's largest consumer of metals, copper prices have approached record highs, dampening demand, and manufacturers have pointed to weaker orders this month.
On the London Metal Exchange (LME), the price of copper fell by 1.2% to $13,765 per ton as of 5:47 a.m. Kyiv time, reducing this week's increase to about 1.5%. Thus, 1 kilogram of metal will cost $ 13.77.
