AUD/USD flows: DRC tightens copper exports
Copper's break higher picks up as DRC restrict raw exports
Marginally AUD supportive albeit a varied overall commodity mix price picture
Interesting side story, as DRC announces the ban on exports of copper and cobalt concentrates, as part of its efforts to onshore processing to increase value capture, as well as tax revenues. There is a 3-month transition period though miners can apply for a 1-year strategic waiver.
Copper futures have blipped firmer, up over 1.5% on the day from nearer flat prior. This extends the recent strength on the risk rebound with futures clearing the early summer tops to new extreme highs. With structural influences from electrification and AI capex requirements, copper has been a strategic favoured real asset allocation for many.
As a background story, at the very margin copper and recent metals pick ups are not unhelpful to the AUD’s cause. That said, any AUD support is more from the dollar and risk appetite proxy aspects - iron ore prices have been down at the very low end of the range for recent years, coal more middling, so the net picture from this side is more mixed