Copper prices slipped on Thursday, creeping above $10,000 a metric ton before retreating under pressure from a firmer dollar and persistent uncertainty over how tariffs will affect demand.

Three-month copper HG1! on the London Metal Exchange fell 0.3% to $9,983 a ton in official open-outcry trading after touching $10,015. That was the second successive session it has moved above the $10,000 mark.

“I think the news in copper markets remains quite supportive, but the dollar is a bit firmer this morning, adding some headwind to prices,” said WisdomTree commodities strategist Nitesh Shah.

The dollar index DXY held steady as traders awaited key U.S. consumer price data for a steer on the Federal Reserve’s rate cutting path.

A strong dollar makes commodities priced in the U.S. currency more expensive for buyers using other currencies.

“Miners are experiencing more disruptions to their production than they had anticipated, combined with the fact that capex going into copper mines is just not enough to keep up with growth in metal demand,” Shah added.

One of the world’s largest copper mines, Grasberg in Indonesia, temporarily halted mining this week after an underground incident.

The most-traded copper contract on the Shanghai Futures Exchange HG1! gained 0.6% to 80,130 yuan ($11,251.37) a ton.

Copper has failed several times this year to make headway above $10,000 since it hit $10,0164.50 in March for its strongest in more than eight months.

Many investors have been on the sidelines, waiting to see if U.S. tariffs dampen demand as expected, Shah said.

“It’s more complicated and the net effect may be that metal demand doesn’t really fall that much because of all the other stimulus activity,” he said.

Among other metals, LME aluminium ALI1! rose 0.9% in official activity to $2,649.50 a ton and tin FTIN1! gained 0.1% to $34,650 while zinc ZNC1! dipped 0.3% to $2,879, lead LEAD1! lost 0.1% to $1,985 and nickel NICKEL1! was down 0.5% at $15,065.
Source: Reuters