Copper prices continued to climb for the third consecutive session on Friday, supported by strong demand from China, the world’s largest metals consumer, and investor expectations that the U.S. Federal Reserve may soon signal interest rate cuts.
Market Performance
Benchmark three-month copper on the London Metal Exchange (LME) was slightly higher at $9,725 per metric ton during official open-outcry trading. This is down from a recent peak of $10,020.50 touched on July 2, which marked the strongest level in more than three months.
Chinese Demand and Tariffs
Nitesh Shah, a commodity strategist at WisdomTree, highlighted that refined copper remains exempt from tariffs, which helps sustain demand. He noted, “Chinese demand for copper remains fairly healthy.”
Last month, U.S. President Donald Trump announced a 50% tariff on copper products, but ores, concentrates, and cathodes were left out of the policy. In China, the Yangshan copper premium, a measure of demand for imported copper, has climbed 13% to $51 per ton since August 11.
Investor Attention on Powell’s Speech
Investors are closely awaiting U.S. Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole conference in Wyoming, scheduled for 1400 GMT. Many expect the remarks could provide fresh clues on the future of interest rates.
Shah added, “If there’s any sign of a dovish bent there, I think that could be very supportive for copper prices as that would maintain demand.”
Dollar Strength and Market Pressure
Despite the positive momentum, copper’s gains were capped by a stronger U.S. dollar index after several Fed officials showed hesitation toward a rate cut next month. A firmer dollar makes dollar-denominated commodities more expensive for foreign buyers, putting some pressure on copper prices.
Aluminium and Other Base Metals
Alongside copper, LME aluminium prices also edged higher, rising 0.1% to $2,586.50 per ton. Analysts at Guosen Futures suggested that expectations of seasonally stronger demand in the coming month may have lifted aluminium prices.
Other metals showed mixed movements:
- Zinc advanced 0.6% to $2,781.50 per ton
- Lead gained 0.8% to $1,985.50 per ton
- Tin added 0.1% to $33,450 per ton
- Nickel dipped 0.1% to $14,915 per ton
Outlook for Copper Prices
The near-term outlook for copper depends largely on signals from the Federal Reserve and sustained demand from China. If Powell hints at upcoming rate cuts, copper prices could gain further momentum. However, currency fluctuations and trade policies will remain key factors influencing the global metals market.
