Copper Prices on Track for Third Straight Monthly Gain

Copper prices are on track for their third consecutive monthly gain due to improving factory activity in China and ongoing supply tightness, despite a slight drop on Wednesday. Benchmark three-month copper CMCU3 on the London Metal Exchange was down 0.1% to $14,416.50 per metric ton as of 1600 GMT.

However, it is still expected to rise by 0.9% for the month and has gained 7.9% in the third quarter. The metal reached a record high of $14,875 on September 10.

The improving factory activity in China is a significant factor supporting copper prices. The official purchasing managers' index rose to 50.1 in September from 49.8 in August. Additionally, copper stocks in Shanghai Futures Exchange warehouses declined by 17.8% last week to 38,744 tons, the lowest since January 2024.

ING commodities strategist Ewa Manthey attributed the support for copper prices to a relatively tight market balance over the coming quarters. She noted that while uncertainty around global growth and trade policy remains a consideration, structural demand trends and constrained supply growth should keep prices well supported through Q4.