Copper held above $14,000 a tonne on Friday, August 21, 2026, following the US Treasury's surprising move to curb borrowing costs. Treasury Secretary Scott Bessent directed a significant increase in purchases of long-dated government debt to contain rising yields and bolster the US economy. This intervention provided support to copper, which had previously faced pressure as a short-term supply crunch began to ease earlier in the week.
At 12:08 p.m. Shanghai time, copper was up 0.2% at $14,075 a tonne. Aluminum was slightly lower, while zinc and lead saw slight increases. The US Treasury's action to reduce borrowing costs typically weakens the dollar, making commodities like metals more attractive to international buyers. The Bloomberg Dollar Spot Index remained stable on Thursday after falling to a three-month low the previous day.
The London Metal Exchange (LME) experienced a turbulent week for copper prices, with spreads and prices initially soaring due to a historic supply squeeze caused by low inventories. This squeeze was alleviated by substantial inflows of metal into LME warehouses on Tuesday and Wednesday. Jinrui Futures Co. noted the current market's high volatility and emphasized the need to monitor changes in the macro environment and potential copper tariffs. Copper inventories in LME warehouses had been depleted by increased shipments to the US, driven by higher prices there in anticipation of President Donald Trump announcing import tariffs. Iron ore dropped 0.7% to $95.30 a tonne, and yuan-priced futures on the Dalian Commodity Exchange were down 2.7%.
