Copper, Aluminium prices climb as Kwacha extends losing streak

Aluminum and copper prices climbed on Friday as optimism grew over a potential deal to end the record-breaking U.S. government shutdown, boosting risk appetite across global markets and driving a broad rally in industrial metals.

Aluminum rose 1.1 percent to US$2,879.50 per ton in Shanghai, extending its strong recent run amid Chinese capacity constraints and steady demand.

According to Access Bank Group’s market commentary, analysts noted that bullish investor sentiment could sustain prices in the near term, though high producer margins might limit further upside.

“Copper also advanced, with traders reportedly paying premiums for U.S.-bound shipments amid renewed tariff concerns ahead of potential new levies next year.

“The gains in both metals reflected a sense of relief over signs that Washington may be nearing a funding compromise to reopen the federal government — a political impasse that had started to dampen confidence in global economic growth,” the commentary stated.

In foreign exchange markets, the U.S. dollar held firm in early Asian trading as weak economic data rekindled global growth concerns.

The dollar index rose 0.2 percent to 99.740, snapping a three-day losing streak, with both the yen and euro losing ground.

“Hopes of a bipartisan Senate deal to fund the government through January helped stabilize sentiment, offsetting the shock from the University of Michigan’s consumer sentiment index, which fell to its lowest level in nearly three and a half years,” the commentary added.

Closer to home, the Zambian kwacha extended its losing streak, weakening for an eighth consecutive session against the greenback. The local unit slipped 0.19 percent, closing just below K22.8000 per dollar, as demand for hard currency persisted amid limited supply.

“The kwacha’s trajectory remains under pressure due to ongoing dollar demand from corporates and constrained inflows. Without a meaningful pickup in supply, the local currency may remain range-bound with a depreciation bias in the near term,” the report noted.

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