Copper Edges Higher Despite Persistent Macro Headwinds

Copper prices edged higher on Tuesday despite persistent macro headwinds, including a strong dollar and elevated oil prices. The LME copper price rose by 0.34% to $14,461.50 a metric ton, while the most-traded copper contract on the Shanghai Futures Exchange inched up 0.09% to 109,530 yuan ($16,335.08) a ton.

The previous session saw a sharp selloff in copper prices, with LME copper falling by 1.4% and touching its lowest point in over ten days since the weak Chinese industrial profits data added pressure from rising oil prices and a stronger dollar.

Analysts at Galaxy Futures noted that downstream copper users in China have largely completed pre-holiday restocking and are buying only as needed after the recent price decline, adding to demand worry. Traders are awaiting China’s manufacturing purchasing managers' data due later this week for further signals on metals demand.