Copper for March delivery fell to $3.83 per pound ($8,668 per ton) on the Comex market in New York, down 0.3% from Thursday’s closing price.
Three-month copper prices on the London Metal Exchange (LME) fell 0.4% to $8,432.5 a tonne by 1109 GMT, after hitting $8,416, the lowest level since Dec. 13.
Data on Thursday showed that the number of Americans filing new claims for unemployment benefits fell more than expected last week, putting the dollar on track for its strongest weekly gain since May.
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“Metals are under pressure following this week’s U.S. jobs data as signs mount that the Federal Reserve will not begin cutting interest rates as expected,” ING’s Ewa Manthey said in a note.
“If U.S. interest rates remain high for an extended period, this will lead to a stronger dollar and weaker investor sentiment, which in turn will lead to weaker metal prices.”
However, signs of tight supply and low inventories in China are supporting copper prices.
Russian mining company Udokan Copper is assessing the damage from a fire at its plant, which is expected to start producing copper cathodes in 2024. Delays will further exacerbate the industry’s growing supply disruption issues.
CITIC Securities said that with the decline in mine production growth, the global refined copper market will face an expanding deficit from 2025 to 27.
