Copper Holds Firm on Resilient China Demand

Copper futures remained above $5.95 per pound on Friday after rebounding in the previous session, supported by signs of improving demand in China despite ongoing headwinds from the Middle East conflict. Data released Thursday showed Chinese manufacturing activity expanded more than expected in April, as factories accelerated production to ship goods early to overseas buyers concerned that the Iran conflict could further drive up costs. The metal also continues to draw support from solid underlying fundamentals, with major technology firms securing long-term supply agreements that are driving rapid expansion in data center infrastructure, reinforcing copper demand given its critical role in electrification and power grid networks. However, Commerzbank cautioned that elevated copper prices are increasingly acting as a key constraint on further upside, potentially limiting additional gains in the near term.

Copper futures steadied around $5.9 per pound on Thursday after five consecutive sessions of losses, as industrial metals drew support from stronger-than-expected expansion in China’s manufacturing activity despite ongoing pressure from the Middle East conflict. The metal also remains underpinned by solid fundamentals, with major technology firms securing supply agreements that are fueling rapid growth in data center construction, reinforcing copper demand given its essential role in electrification and power grid infrastructure. On the supply side, production from top producer Chile faces increasing uncertainty after the Middle East conflict disrupted sulphur shipments to China, leading Beijing to curb exports of sulphuric acid, a critical input for roughly half of Chile’s copper refining operations. In Indonesia, the Grasberg mine continues to operate below capacity following a fatal mudslide that triggered a force majeure event.

Copper futures steadied around $5.95 per pound on Wednesday after falling for four consecutive sessions, as supportive long-term fundamentals helped offset near-term pressure stemming from the Iran conflict. Major technology firms continue to secure agreements that are driving rapid expansion in datacenter construction across key manufacturing hubs, underpinning copper demand given its critical role in electrification and power grid infrastructure. On the supply side, output from top producer Chile faces growing uncertainty after the Middle East conflict disrupted sulphur shipments to China, prompting China to restrict exports of sulphuric acid, a key input for roughly half of Chile’s copper refining process. In Indonesia, the Grasberg mine remains underutilized following a fatal mudslide that triggered a force majeure event. Meanwhile, concerns that the Iran war could weigh on global growth are dampening demand expectations for industrial metals.