Supply panic and a weak US dollar together drove the prices of basic metals higher, with London copper nearing an all-time high!

Notice that, due to supply concerns and a weak US dollar, base metals have started the week strong, pushing copper prices closer to historic highs. London market copper for three-month delivery briefly rose by 1.5% to $13,195 per ton, while trading prices for aluminum and tin also reached their highest levels since 2022. The widely used "red metal" copper, which is commonly used in electrical wiring and cables, has risen by over 20% since mid-November. Market expectations are that a large influx of metals will enter the US before the Trump administration makes a decision on import tariffs, leading to supply shortages in other parts of the world. Investors are also weighing the impact of threats of criminal prosecution from the US Department of Justice on the Federal Reserve. Fed Chair Powell stated that this is part of a series of actions by the Trump administration to influence interest rate decisions. The weakening US dollar has boosted commodity prices. Metal prices have experienced a strong rebound during the New Year, with the comprehensive London Metal Exchange Index (LMEX Index) rising for four consecutive weeks, marking its best performance since August last year. Investors have been rushing to buy physical assets, believing that these assets may benefit from US monetary easing policies, a weak US dollar, and supply chain disruptions. Copper prices hit a new high last week, while aluminum and nickel surged last Friday. As one of the key indicators of global inventory changes, copper stocks in the monitored warehouses of the New York Commodity Exchange (Comex) have increased for 42 consecutive weeks, setting a record. As of the time of writing, London Metal Exchange (LME) copper for delivery rose by 0.9% to $13,116.50 per ton. In other metals, aluminum prices rose by 0.7%, on track to hit the highest closing price since April 2022 (after the Russian invasion of Ukraine). Tin prices rose by over 3%, bringing its increase since the beginning of the year to 16%.