Copper Prices Rise as China's Factory Activity Picks Up
Copper prices climbed higher on Wednesday due to improved factory activity in China, which is set to post its third consecutive monthly gain. According to data from the official purchasing managers' index, China's copper-intensive manufacturing sector experienced growth in September, with a reading of 50.1 compared to 49.8 in August. The private RatingDog survey also showed factory activity expanding at a faster pace, reaching a five-month high of 52.1.
Despite trading remaining subdued ahead of the National Day holiday in China, analysts expect copper prices to be supported by structural demand trends and constrained supply growth through Q4. Ewa Manthey, commodities strategist at ING, noted that while uncertainty around global growth and trade policy remains a consideration, these factors should help keep prices well-supported.
On the London Metal Exchange, benchmark three-month copper rose 0.2% to $14,465 per metric ton as of 0930 GMT. The metal has gained around 8.2% in the third quarter, having hit a record high of $14,875 on September 10.
The Shanghai Futures Exchange warehouses saw stocks decline by 17.8% from last week to 38,744 tons, marking the lowest level since January 2024. The domestic premium for physical copper in China has slipped from its peak of 1,375 yuan a ton to 1,050 yuan a ton, while the Yangshan premium rose slightly to $119 a ton.