Copper set for weekly loss on strong dollar, macro headwinds – Knowledge Returns Alliance
 

Copper set for weekly loss on strong dollar, macro headwinds

July 16, 2026

Copper fell on the London Metal Exchange on Friday and was on track to post a weekly loss as macroeconomic headwinds outweighed dip buying.

Benchmark three-month copper CA1! on the LME fell 0.78% to $13,167 a metric ton by 0700 GMT.

The most-traded copper contract on the Shanghai Futures Exchange HG1! was supported by bargain-buying, edging up 0.21% to 101,560 yuan ($14,930.24) a ton.

The red metal was poised to end the week down more than 3% on the LME and just under 3% on the SHFE.

Lower Shanghai copper prices brought some buying interest back to the market on Thursday, providing support, Chinese broker Jinrui Futures, a subsidiary of copper producer Jiangxi Copper, wrote in a note.

The U.S. dollar DXY surrendered gains earlier in the day to decline 0.01%. It nonetheless remains high, up 0.5% since the start of the week, weighing on greenback-denominated metal markets by making them more expensive for buyers using other currencies.

Elsewhere, economic headwinds from the war in the Middle East helped push a key U.S. inflation indicator to its highest level in three years in May. Inflation and higher interest rate expectations have weighed on growth-dependent industrial minerals.

Aluminium was largely stable, taking into stride jitters in this week’s tentative Middle East peace after a cargo ship was hit by a projectile in the Strait of Hormuz.

On the LME AH1!, it was flat, and on the SHFE ALI1!, it edged up 0.11%. Prices for the light metal have fallen 7% on the LME since the start of the week as the Middle East risk premium receded.

Among other LME metals, zinc ZNC1! lost 0.63%, lead LEAD1! dipped 0.24%, nickel NICKEL1! dipped 0.17% and tin FTIN1! dipped 0.06%.

Elsewhere on SHFE, zinc ZNC1! dipped 0.27%, lead LEAD1! added 0.31%, nickel NICKEL1! lost 0.57% and tin FTIN1! gained 0.57%.

($1 = 6.8023 Chinese yuan)