Copper Rises as Fed Rate Hike Bets Ease
Copper futures climbed above $6.5 per pound on Monday, recovering some of last week’s losses as weaker-than-expected US jobs data reduced pressure on the Federal Reserve to raise interest rates further. Higher interest rates would generally weigh on non-yielding assets such as commodities. Longer-term demand expectations tied to the global expansion of data centers and renewable energy also supported copper, although the near-term outlook remained pressured by signs of slowing industrial activity in top consumer China. On the supply side, Chilean production fell in August to its lowest level since February 2011, while workers at Antofagasta’s Centinela mine voted to strike after wage negotiations broke down. Elsewhere, the Trump administration has so far delayed a decision on tariffs for refined copper. Earlier threats of US tariffs on refined metals prompted traders to redirect shipments into American warehouses, helping drive a rally in copper prices.
5 per pound on Monday, recovering some of last week’s losses as weaker-than-expected US jobs data reduced pressure on the Federal Reserve to raise interest rates further. Higher interest rates would generally weigh on non-yielding assets such as commodities. Longer-term demand expectations tied to the global expansion of data centers and renewable energy also supported copper, although the near-term outlook remained pressured by signs of slowing industrial activity in top consumer China.
On the supply side, Chilean production fell in August to its lowest level since February 2011, while workers at Antofagasta’s Centinela mine voted to strike after wage negotiations broke down. Elsewhere, the Trump administration has so far delayed a decision on tariffs for refined copper. Earlier threats of US tariffs on refined metals prompted traders to redirect shipments into American warehouses, helping drive a rally in copper prices.