China Copper Prices Fall Then Rebound Amid Macro Factors
China's refined copper prices experienced a volatile week from September 14 to 18. The market saw prices fall, only to rebound as overall price levels declined on a weekly basis.
The macroeconomic environment had a significant impact on copper prices. On one hand, easing expectations of U.S. tariffs on refined copper led to the unwinding of the tariff premium that had built up. On the other hand, firm inflation kept rate-hike expectations strong, weighing on copper prices.
However, after the Federal Reserve's rate hike, the U.S. dollar index rebounded and gold fell, while copper prices recovered instead. Despite the Fed remaining hawkish on future rate policy, with the rate-hike overhang removed and raw material and spot supply tight, copper prices found strong support.