Copper prices rise as investors purchase over concerns about supply
On 'Wednesday, copper reached a new three-month-high as investors bought on future supply concerns. Middle East uncertainty kept oil prices high and higher than expected U.S. inflation dimmed the prospects for a near-term rate cut.
As of 0700 GMT, the benchmark three-month copper price on the London Metal Exchange increased by 0.83%, to $14137.50 per metric ton, after having reached $14196.50. This was a three-month-high.
The Shanghai Futures Exchange's most active copper contract closed the daytime trade 1.67% higher, at 108.510 yuan (15,980.15) per ton. It had also reached a three-month-high of 108.900 yuan.
Freeport-McMoRan reaffirmed its timeline of a complete recovery?at the Grasberg Mine in Indonesia by 2027, while traders in Peru monitored risks for the mining industry?over fuel following state-run Petroperu's request for $2 billion in government-backed loans.
Analysts at Chinese broker Galaxy Futures stated that copper prices quickly rose due to momentum buying and strong sentiment.
The red metal is often called "Dr. Copper", for its role in macroeconomic indicators, and it's on its way to its eighth day of gains, despite macroeconomic factors that are not favorable.
Brent oil prices remained high on Wednesday, Brent being above $106 a barrel, as investors awaited the meeting between U.S. president Donald Trump and Chinese President Xi Jinping.
Energy prices are increasing. U.S. consumer price rose 3.8% over the past 12 months, the biggest increase since May 2023. Markets have priced in any Federal Reserve rate cut this year.
The dollar price of metals is affected by a stronger rate outlook for the foreseeable future, as it increases financing costs and lifts the U.S. dollar.
Aluminium gained 1.07% on the LME. Zinc added?0.45%. Lead rose 0.55%. Nickel increased?1.04%. Tin advanced 1.46%.
On SHFE, aluminium gained 0.97%. Zinc climbed 1.78%. Lead ticked up by 0.15%. Nickel was up by 0.17%. Tin rose 0.99%.
(source: Reuters)
