Copper Rises Amid Strong China Data

Copper futures climbed toward $6.60 per pound on Monday, recovering from last week’s losses as stronger-than-expected economic data from China, the world’s largest consumer, improved the demand outlook. China’s economy grew 4.5% in the third quarter, accelerating from a three-year low of 4.3% in the second quarter and exceeding forecasts of 4.4%. Industrial production also rose 5.5% year over year in September, up from 5.2% in August and surpassing expectations of 5.4%. Meanwhile, copper prices received additional support from tightening supply as labor strikes and adverse weather disrupted mining operations in Chile, the world’s largest copper producer. On the demand side, the metal continued to benefit from robust growth prospects in data center infrastructure, semiconductor manufacturing, and battery energy storage systems.

Copper futures climbed toward $6.60 per pound, rebounding from two-week lows as the US dollar weakened amid concerns over a potential slowdown in the AI capital expenditure boom that has supported the American economy and financial markets. A softer dollar makes greenback-denominated commodities such as copper more affordable for overseas buyers, helping support demand. Prices also gained support from tightening supply, as labor strikes and adverse weather conditions disrupted mining operations in Chile, the world’s largest copper producer. Strikes affected BHP Group’s major Escondida mine and Antofagasta Plc’s Centinela mine, while unfavorable weather hampered open-pit operations at Codelco’s El Teniente mine. On the demand side, copper continued to benefit from strong growth prospects in data center infrastructure, semiconductor manufacturing, and battery energy storage systems.

Copper futures declined toward $6.50 per pound on Thursday, extending losses for a third consecutive session as stronger-than-expected US inflation reinforced expectations of further Federal Reserve rate hikes, dampening the demand outlook for industrial metals. Higher borrowing costs could slow economic growth, potentially weighing on overall copper consumption. However, tightening supply may limit further price declines, as labor strikes and unfavorable weather conditions disrupt mining operations in Chile, the world’s largest copper producer. Worker strikes affected BHP Group’s major Escondida mine and Antofagasta Plc’s Centinela mine, while adverse weather disrupted Codelco’s El Teniente open-pit operations. On the demand side, copper continues to receive support from strong growth prospects in data center infrastructure, semiconductor manufacturing, and battery energy storage systems.