Copper Prices Reach New Highs on China Demand Expectations
Copper prices have been on a roll, rising for a fifth consecutive session as demand expectations in China fuel speculative buying. According to Saxo Bank's head of commodity strategy Ole Hansen, renewed speculative demand has pushed copper higher after funds cut their net long positions in Comex copper futures.
The three-month benchmark copper price on the London Metal Exchange (LME) reached $14,654 a metric ton, its highest level since September 10. The premium of US copper futures over LME prices widened but remained insufficient to encourage new physical shipments to COMEX copper stocks.
Expectations for inventory replenishment in China ahead of the country's holidays on September 25 and from October 1 to 7 provided support for copper prices. Traders are awaiting this week's meeting between US President Donald Trump and Chinese leader Xi Jinping, which may have an impact on refined copper tariffs.