Weak Dollar Spurs Metal Demand

Posted in Industry News on 24th March 2010

William Rowland are a leading supplier of Copper.

The price of copper gained in New York and London this week as a wavering dollar drove demand for commodities as the currency and inventories monitored by the LME shrank.

As monetary systems fluctuate, a weaker US currency means that dollar priced metals become cheaper for those individuals and companies who hold other monies.

Alarmingly for warehouses currently holding copper stockpiles that are monitored by the LME, it was revealed that inventories were at their lowest level in nearly two months. As well as reduced stockpiles, the industry price of copper had also fluctuated. Comex Copper fell 2.7 percent to $3.29 a pound this week as the dollar rose.

Concern for copper futures also mounted after it was announced that China, the world’s largest consumer of copper, may decrease their demand because of recent government steps aimed at reducing economic growth. Following China’s new internal policy, their aluminium and zinc stockpiles have increased to more than double the amount stored in warehouses.

Although copper was the most affected metal, other metals on the LME were also feeling the force of dollar fluctuations.

The price of aluminium rose 0.8 percent; zinc had a rise of 0.9 percent; nickel rose 1.7 percent.

William Rowland Ltd are copper suppliers, and if you would like to find out how we can meet your requirements, please contact us using the Quick Enquiry Form on the right-hand side of this website.

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