Copper Climbs as China Demand and Stronger Stocks Offset Fed Rate Hike Bets

Copper prices surged in London, rising by as much as 1.3% and settling at $14,371 a ton, despite the anticipation of a US rate hike scheduled for Wednesday.

The upward momentum was attributed to stronger stock markets and tighter physical conditions in China, where importers are paying higher premiums over futures to secure cargoes at Shanghai's Yangshan port.

RBC Capital Markets analyst Sam Crittenden noted that the reports of no US copper tariffs have unwound some of the physical market speculation, leaving fundamentals supportive despite near-term price weakness.