Copper Set for Third Straight Monthly Gain Amid Tight Supply
Copper prices are expected to post their third consecutive monthly gain due to improving factory activity in China and tight supply, while aluminum prices have hit a two-month low.
The benchmark three-month copper contract on the London Metal Exchange (LME) was down 0.1% to $14,416.50 per metric ton but still poised for a 0.9% monthly rise. In the third quarter, copper prices have gained 7.9%, hitting a record high of $14,875 on September 10.
The copper-intensive manufacturing sector in China saw its official purchasing managers' index (PMI) rise to 50.1 in September from 49.8 in August. Copper stocks in Shanghai Futures Exchange warehouses declined by 17.8% from last week to 38,744 tons, the lowest since January 2024.
ING commodities strategist Ewa Manthey notes that copper prices are finding support due to expectations of a relatively tight market balance over the coming quarters. While uncertainty around global growth and trade policy remains a consideration, structural demand trends and constrained supply growth should help keep prices well supported through Q4.