Copper Prices Rebound Amid Fed Rate Hike Expectations
Copper prices rebounded on Wednesday, climbing away from a three-week low despite expectations of a Federal Reserve interest rate hike later in the day.
The metal's price rose by 0.53% to $14,158 per metric ton on the London Metal Exchange, and gained 0.64% to 107,610 yuan ($16,037.97) per ton on the Shanghai Futures Exchange.
Markets had priced in a nearly 90% chance of a 25-basis-point rate hike by the Fed, up from around 60% last week. Higher interest rates typically put pressure on economic growth, which can negatively impact industrial metals like copper.
Support for copper came from falling treatment charges and weak smelter margins in China, as well as signs of firmer physical demand in the country's market. However, exchange inventories continued to build, a potential headwind for prices going forward.