Copper Rebounds as Metals Complex Bounces Back

Copper futures have staged a remarkable rebound in recent sessions, climbing to around $6.45 per pound on Thursday as part of a broader metals complex recovery.

This upward momentum is attributed to several factors, including long-term demand expectations tied to data centers and renewable energy sources, as well as supply disruptions at major mines.

However, investors remain cautious due to the US Federal Reserve's signals that additional interest rate increases may be necessary to combat persistent inflationary pressures, which could weigh on non-yielding metals like copper.

Copper had fallen to multi-week lows earlier in the week after reports of delayed tariffs on refined metal by the Trump administration, but warehouses monitored by the London Metal Exchange have received fresh copper deliveries and posted their largest inflows in nearly four weeks.

This has pushed London prices into contango, indicating ample near-term availability of copper.