Copper Prices Rise on Signs of Improving Chinese Demand

Copper prices gained on Friday, supported by signs of improving demand in China, the world’s largest metals consumer, as buyers sought to build inventories ahead of the National Day holiday.

Benchmark three-month copper on the London Metal Exchange (LME) rose 0.4% to $9,982 per metric ton in official open-outcry trading.

Even so, prices remain 2% below Monday’s peak of $10,192.50 per ton — the highest level in 15 months — as traders took profits following the U.S. Federal Reserve’s rate cut on Wednesday.

Yangshan copper premiums, which reflect China’s appetite for imported metal, climbed 1.8% on Friday to $57 per ton.

Chinese consumers typically increase copper purchases ahead of the October 1–8 National Day holiday to replenish stocks, a period that often coincides with a slowdown in broader economic activity.

Citi, in a research note, forecast LME copper prices to trade in a range of $9,500–10,500 per ton in the fourth quarter, and to climb to $12,000 by 2026, driven by a weaker U.S. dollar and insufficient supply growth to meet rising demand.

The bank also projected refined copper consumption to grow 2.9% next year to 27.5 million tons, shifting the global market from a surplus of 63,000 tons this year to a deficit of 308,000 tons.

Source：economies.com