In a sharp turn of events at the start of Q4 2023, copper prices have seen a significant decline, driven by a robust dollar and growing inventories. The high U.S. interest rates have played a key role in strengthening the dollar, making dollar-priced metals more expensive for holders of non-dollar currencies.
This trend has been further accentuated by an increase in copper stocks in LME-registered warehouses. An uptick in Chile's copper output has also added to the supply pressure, while demand remains steady due to China's market being on holiday break.
In contrast to copper, lead prices have experienced an uptick. Metals such as nickel, zinc, and tin have seen varying dynamics with tin stocks rising and prices falling, while aluminum prices remain constant.
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