Copper Prices Rise to Near Record Highs on Chinese Demand Speculation
Copper prices rose for a fifth consecutive session on Monday, with expectations of increased demand in China driving speculative buying. The benchmark three-month copper price on the London Metal Exchange reached $14,654 per metric ton by 0957 GMT, its highest level since September 10.
Commodity strategist Ole Hansen attributed renewed speculative demand to funds cutting their net long positions in Comex copper futures last week due to uncertainty over refined copper tariffs. However, the premium of US copper futures over LME prices remains insufficient to encourage new physical shipments to COMEX copper stocks.
The Yangshan copper gauge of Chinese demand for imported copper finished last week at $124 per ton, its highest in nearly four years, but eased to $119 on Monday. Expectations for inventory replenishment in China ahead of the country's holidays provided support for copper prices.