Copper Prices Soar on Chinese Demand Expectations
Copper prices continued their upward trend on Monday, marking a fifth consecutive day of gains as speculators bet on increased demand in China. Benchmark three-month copper on the London Metal Exchange rose by 1.4% to $14,725 per metric ton, its highest level since September 10.
Analysts pointed to renewed speculative buying, driven by expectations of a seasonal pickup in Chinese demand ahead of the country's holidays on September 25 and from October 1 to 7. The premium of US copper futures over LME prices widened, making it more attractive for new physical shipments to COMEX copper stocks.
Ole Hansen, Saxo Bank's head of commodity strategy, noted that funds had cut their net long positions in Comex copper futures in the week to September 15, as the White House has yet to decide on refined copper tariffs. This uncertainty contributed to increased speculative demand for copper.