Copper Prices Surge on Weaker Greenback and Strong Demand
Copper futures on the COMEX rose by 1.8% to $6.727 per pound on August 26, nearing the $15,000 mark. This surge surpassed the previous high of $6.7140 per pound set on August 12 and established a new record high for the contract.
The three-month copper price on the LME strengthened in tandem, rising to approximately $14,437 per ton, approaching the historical record high of $14,527.5 per ton set in January.
The market is closely watching the impact of U.S. Treasury Secretary Bessent's announcement to raise the single-operation limit for 10- to 30-year Treasury buyback operations from $2 billion to at least $4 billion, which may lead to a weaker greenback and reduced purchasing costs for non-U.S. buyers.
Zijin Mining faces a production decrease of up to 57,000 metric tons due to earthquakes and floods affecting the Kamoa-Kakula copper mine in the DRC, while LME copper inventories have rebounded recently, reaching 239,925 metric tons on August 20.