Copper Stabilizes on China Demand Hopes

Copper rose to around $5.95 per pound on Tuesday after coming under pressure in the prior session, as investors focused on the upcoming annual convention of the National People’s Congress in top consumer China for demand signals. The annual “Two Sessions,” scheduled from March 4 to around March 11, is expected to set economic targets, outline policy priorities, and release the 15th Five-Year Plan detailing objectives for 2026–2030. However, gains in copper may be capped by a rallying dollar, which strengthened as investors sought the reserve currency amid surging energy prices linked to the Middle East conflict. Markets have pushed back expectations for the next Federal Reserve rate cut to September from earlier forecasts of July, though two 25 basis point reductions remain priced in for 2026. Meanwhile, the US military is expected to intensify attacks on Iran, with President Donald Trump giving no indication that operations would end soon.

Copper decreased 2.01% to 5.884 USD/Lbs

Copper futures in the US fell to $5.9 per pound on Monday, inching down from the near one-month high of $6 in the previous session as war in the Middle East triggered a surge in the dollar and hampered the outlook for global manufacturing activity. Strikes by US forces killed the Supreme Leader of Iran, prompting Tehran to strike multiple allied Middle Eastern countries and their energy infrastructure. The events lifted energy prices, consequently supporting the US dollar and yields to pressure demand for base metals among major foreign consumers. Still, prices remained relatively close to their record high of $6.2 touched in the end of January as bullish speculative demand coincides with tight supply. Funds expect global copper consumption to rise sharply in the next years due to the metal's applications in data centers and electrification technologies. In the meantime, new mined output is not seen growing in a comparable pace due to decades of underinvestment in the sector.