Copper futures surged toward $6.60 per pound on Monday, rebounding from last week’s declines. The rally was driven by stronger-than-expected economic data from China, the world’s top consumer of the metal. China’s economy expanded by 4.5% in the third quarter, up from a three-year low of 4.3% in the second quarter and beating forecasts of 4.4%. Industrial production also saw a year-over-year increase of 5.5% in September, up from 5.2% in August and surpassing expectations of 5.4%.
The demand outlook for copper received further support from supply constraints. Labor strikes and adverse weather disrupted mining operations in Chile, the world’s largest copper producer. These disruptions tightened supply, contributing to the price rise. On the demand side, copper continued to benefit from strong growth prospects in data center infrastructure, semiconductor manufacturing, and battery energy storage systems.