Copper Price Volatility Continues Amid Economic Uncertainties

Copper prices remain volatile following a weekly loss in five weeks. The surge in US copper imports and eased bets on a September interest rate hike have offered support to the red metal, but rising inventories and economic uncertainties are curbing its gains.

A mining disruption in top producers like Chile and strong exports continue to support the long-term bullish outlook for copper. In July, US importers shipped in over 200,000 tonnes of copper, the highest monthly import in 12 years.

The influx of copper stockpiles has eased some pressure off copper prices. In LME warehouses, stocks rose by 28,000 tonnes as some previously canceled stocks were re-warranted. The market will likely react to the Fed's Chair speech and performance of the US dollar amid persistent economic uncertainties.