Copper Rebounding as Fed Rate Hike Bets Fade
Copper futures rose above $6.5 per pound on Monday, bouncing back from last week’s losses as weaker-than-expected US jobs data eased pressure on the Federal Reserve to continue raising interest rates. Higher rates typically weigh on non-yielding assets like commodities, so the shift in expectations provided a boost to copper prices.
Long-term demand for copper remains strong due to the global expansion of data centers and renewable energy projects. However, near-term concerns persist, particularly with signs of slowing industrial activity in China, the top consumer of the metal.
On the supply side, copper production in Chile dropped to its lowest level since February 2011 in August, while workers at Antofagasta’s Centinela mine voted to strike after wage negotiations failed. Meanwhile, the Trump administration has delayed a decision on tariffs for refined copper, which had previously driven traders to stockpile the metal in US warehouses, contributing to price gains.