The price of copper is rising Monday despite a record high dollar as markets fear supply disruptions due to high energy prices, trading data showed. Why is the cost of copper going up? December futures for copper rose 0.69% to $3.4185 a pound on the Comex exchange.

Has the cost of copper gone up?

At the end of trading on the London Metal Exchange (LME) on Friday, the cost of a ton of copper with delivery in three months rose by 0.47%, to 7,633 dollars; aluminum — by 0.02%, to 2,295.5 dollars. Zinc — fell by 3.8%, to 3,135.5 dollars.

Investors are assessing supply prospects amid risks to production from the energy market. Last week, Dutch aluminum producer Aldel announced it was suspending operations at its Damco plant in Farmsum amid high energy prices. Earlier, ArcelorMittal, Alcoa and Norsk Hydro also announced production cuts because of high energy prices.

The situation around the energy crisis in Europe causes concern in the raw materials market. The cost of copper is rising despite the strengthening dollar, as markets focus on supply. 

The dollar index (an exchange rate against a basket of currencies of six U.S. trading partners) is above 110 points, its highest level since June 2002. The traditionally expensive dollar is holding back demand for commodities, including copper.

Earlier, we reported that the crisis poses a serious threat to European aluminum production.