Copper Prices Retreat Amid Inflation Concerns and Tariff Uncertainty
Copper prices retreated from highs this week due to rising oil prices fueling inflation concerns and uncertainty over US tariff decisions on copper cathode. The market initially speculated that a decision could emerge around September 28, but no new information was released by press time.
New York Fed President Williams stated that another rate hike remained possible within the year, but not necessary to act hastily, which cooled rate-hike expectations and helped stabilize copper prices.
LME copper traded between $14,342-14,585/mt, while SHFE copper traded between 108,970-109,960 yuan/mt. As of September 30, LME copper closed at $14,457/mt and the most-traded SHFE copper contract closed at 109,620 yuan/mt.
The fundamentals front saw both COMEX and LME inventories edge up this week due to continued copper resource flows into the US. The related inventories were unlikely to flow back to non-US markets in the short term, but the LME/COMEX price spread has been narrowing since late August.