The price of copper in London experienced a boost on Monday, primarily due to the weakness of the U.S. dollar. However, the overall gains were restrained by two factors: a decline in winter demand from China, which is the largest consumer of copper globally, and an increase in current inventories. While the weakened U.S. dollar provided some support, the dampened demand and surplus supply prevented copper prices from experiencing significant growth.
Despite the positive influence of the currency market, the slowdown in winter demand in China and the rise in inventories have put a halt on the potential surge in copper prices. The reduced demand from China, combined with the increased supply of copper, has created a less favorable market environment for copper producers. As a result, the gains witnessed in London were relatively limited. This situation highlights the delicate balance between global economic factors that impact the price of copper in the international market.
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