Copper Prices Soar on Tight Physical Markets and Fed Decision

Copper prices surged on Thursday as tight physical markets and relief from the US Federal Reserve's interest rate decision outweighed Beijing's reluctance to launch fresh stimulus.

The most active contract for copper delivery in September rose as much as 2.9% to $6.4930 a pound, with the metal still up 2.2% at $6.4515 ($14,224 a tonne) by late morning.

This gain brings copper within about 2.5% of its record high set in early June when the most active contract moved above $6.60.

Tightness is multiplying with nearby London Metal Exchange (LME) contracts trading at a premium of around $24 a tonne over three-month futures, indicating near-term scarcity.