Copper Prices Steady Ahead of Fed Decision Amid Eased Supply Concerns

Copper prices steadied on Wednesday ahead of the Federal Reserve's decision on interest rates. The Fed is widely expected to raise interest rates for the first time since 2023, which could be a headwind for non-yielding assets like commodities. However, copper supply concerns eased as stockpiles held in LME-accredited storage facilities outside the country continued to rise.

Futures rose slightly on the London Metal Exchange, extending a small gain from the previous session. Three-month futures are trading at a premium of $62.53 a ton to copper for immediate delivery, indicating ample supply. In recent weeks, the market structure known as contango had prevailed, contrasting with the tight market indicated by backwardation.

Copper was 0.1% higher at $14,097 a ton on the LME at 9:38 a.m. Singapore time. Other metals were mixed, with nickel down 0.7% to the lowest this year. Singapore iron ore was down 0.1% to $95.35 a ton.