Copper rebounds on supply concerns and dollar weakness

Copper prices rebounded on Friday amid renewed concerns about tight supplies and a weak dollar.

At 1000 GMT, three-month copper on the London Metal Exchange (LME) was up 0.9% to $ 9,915 a tonne, after losing 3.5% in the previous session.

Metal prices fell on Thursday, in part thanks to China’s intervention to cool the advance in coal prices.

“Oil and gas prices are not falling as much as coal. We think that energy prices are high and will continue like this for the time being and will put pressure on producers again”Said Daniel Briesemann, analyst at Commerzbank in Frankfurt.

“We expect the rise in metal prices to continue. We believe the supply situation will deteriorate further before improving”He added.

In other base metals, aluminum in the LME was up 0.7% at US $ 2,930 a ton, after losing 5.2% the day before; and zinc was up 1% to $ 3,462.

Meanwhile, nickel improved 1.2% to US $ 20,160, lead rose 0.6% to US $ 2,415 and tin added 1.1% to US $ 37,675.