Copper Extends Gains Amid Tight Supply
Copper prices have extended their gains for an eleventh week out of twelve, reaching their highest since September 10th. This surge is attributed to strong demand and tight supply, outweighing concerns about potential rate hikes from the Federal Reserve.
The Chinese market has been driving this increase, with buyers paying up for metal. The Yangshan import premium closed last week at $124 per tonne. Furthermore, several Chinese refineries will shut down for maintenance in October and November, limiting any potential jump in supply. Congestion at Shanghai port also hinders the arrival of imports.
The Iran war has had a restraining effect on copper prices due to fears it may slow global economic growth. However, strong demand and tight supply have kept copper rising, despite warnings from the Fed about further rate hikes.