METALS-Copper notches 16-month high as it heads for strongest week since April

(Updates with official prices) By Tom Daly Oct 3 (Reuters) – Copper struck a 16-month high on Friday, poised for its strongest week in almost six months as supply constraints and a softer dollar boosted prices. Three-month copper on the London Metal Exchange was up 0.7% at $10,565 per metric ton in official open outcry trading and on course for a weekly gain of 4.1%, which would mark its best week since the week of April 7. It earlier touched $10,599.50, the highest since May 29, 2024. "The focus is squarely on the supply side – the risk to supply and the potential delay in getting supply back. That's helping drive the momentum," said Ole Hansen, head of commodity strategy at Saxo Bank. The market "hasn't looked back" since breaking through resistance at around $10,160 last week after Freeport-McMoran's force majeure at its Grasberg mine, Hansen added. Copper stocks in the LME warehouse system have sunk to 140,475 tons, the lowest since the start of August. In the United States, a buildup in copper stocks on the Comex has not weighed on prices, Hansen noted. "Copper is part of this investment story where investors are seeking protection in tangible assets," he said. The dollar, which was heading for its worst week since July, was also supporting prices. A softer dollar makes metals more affordable for holders of other currencies. Tin meanwhile continued its recent ascent, climbing 1.4% to $37,400. It earlier touched $37,695, the highest since April 2, and was on course for a weekly jump of 8.5% for its best since March. The tin market is grappling with possible supply shortages in Indonesia, where authorities have confiscated 42,000 tons of tin sands from miners linked to a corruption case. Aluminium rose 0.4% to $2,703 a ton and nickel gained 0.4% to $15,375, while lead was down 0.3% at $2,018 and zinc fell 0.8% to $2,995, having hit $3,039 earlier in the session, its highest since December 31. (Reporting by Tom Daly; additional reporting by Lucas Liew; Editing by Sonia Cheema, Mrigank Dhaniwala, Susan Fenton and Shailesh Kuber)

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