Copper Set for Weekly Drop

Copper futures steadied around $6.52 per pound on Friday, but remained on track for a nearly 3% weekly decline as signs of weakening industrial activity in top consumer China weighed on the demand outlook. The metal also came under pressure from a stronger dollar, elevated bond yields and rising oil prices, as the risk of an escalation in the US-Iran conflict heightened concerns over inflation. Supply developments remained in focus, with Chilean output potentially disrupted by a strike at a site owned by Antofagasta Plc, while Panama’s government proposed resuming operations at a major mine in the country. Elsewhere, the Trump administration has so far postponed a decision on tariffs on refined copper. Previous threats of US tariffs on refined metals prompted traders to redirect shipments to American warehouses and helped fuel a rally in copper prices.

Copper futures fell to around $6.50 per pound on Thursday, near a two-week low, as investors assessed mixed economic data from top consumer China this week, while a weeklong holiday in the country is expected to dampen trading activity. Data released Monday showed industrial profits in China rose 15.7% in the first eight months from a year earlier, slowing from a 17.6% increase recorded during January-July. Meanwhile, data on Wednesday showed China’s manufacturing sector returned to growth in September, improving the demand outlook in the world’s largest metals consumer. Supply developments also remain in focus, with Chilean production potentially affected by a strike at a site owned by Antofagasta Plc, while Panama’s government proposed restarting operations at a major mine in the country. Elsewhere, the Trump administration has so far delayed a decision on imposing tariffs on refined copper.

Copper futures fell toward $6.5 per pound, extending their retreat from record highs of $6.8 per pound in September, as softening economic data from top consumer China weighed on the demand outlook. Industrial profits in China increased 15.7% in the first eight months from a year earlier, slowing from a 17.6% rise during January-July. Meanwhile, supply concerns are reemerging after workers at Antofagasta’s Centinela site in Chile rejected the company’s final wage offer, paving the way for a strike. Last week, Operations at BHP’s Escondida copper mine in Chile, the world’s largest, were suspended after an accident killed a worker but operations are being resumed progressively. Copper prices advanced more than 4% in the third quarter as physical markets showed signs of tightness, and vast amounts of refined material were stockpiled in US warehouses on expectations that the Trump administration will introduce a tariff on imports.