Copper Marches Toward Record Highs

Copper futures climbed toward $6.6 per pound on Tuesday, reaching their highest level in two months as ongoing supply constraints continued to tighten market conditions. Analysts cited shortages of copper concentrate and scrap copper in top consumer China, driving treatment charges and market spreads higher. Traders also remained cautious over the prospect of new US tariffs on the metal, which has encouraged the diversion of copper shipments into the US. In addition, copper continued to draw support from its favorable long-term demand outlook, fueled by the global shift toward clean energy and the rapid expansion of artificial intelligence data centers. Meanwhile, private data showed China's manufacturing activity slowed to a four-month low in July as output and new orders expanded at a weaker pace, dampening the demand outlook. The Politburo also indicated last week that it would continue relying on existing policy measures instead of rolling out broad-based stimulus.

Copper futures climbed above $6.45 per pound on Friday and were on track to finish the week and the month about 2% and 4% higher, respectively. The gains followed the US Federal Reserve’s decision to leave interest rates unchanged this week, easing concerns over the demand outlook for industrial metals. In top consumer China, the Politburo signaled it would continue relying on existing policy measures rather than introducing broad-based stimulus, emphasizing the need to “fully use” current tools while directing fiscal spending and bond issuance toward boosting demand and improving supply. Meanwhile, copper continued to find support from its strong long-term demand outlook, underpinned by the global transition to clean energy and the rapid expansion of artificial intelligence data centers.

Copper decreased to 5.99 USD/Lbs, the lowest since June 2026. Over the past 4 weeks, Copper gained 5.67%, and in the last 12 months, it increased 46.95%.