Copper Surges as Oil Prices Retreat Amid Global Economic Unevenness

Commodity markets showed mixed results this week, with industrial metals like copper surging while energy prices retreated. The divergence in global commodity markets highlights an uneven economic recovery, particularly for China, the world's largest consumer of many raw materials.

Copper was the standout performer, rising to $14,167.50 per tonne on August 5 from $13,633 a week earlier, an increase of 3.9%. The rally reflects growing demand for copper in electricity grids, data centres, and AI infrastructure, alongside disruptions at major mines.

China's inventories have continued to decline, while the premium paid for imported copper has reached a four-year high, suggesting Chinese buyers are competing for limited global supplies. Traders have also shifted large volumes of copper into the United States ahead of possible tariff changes, tightening supplies elsewhere and pushing international prices higher.

Oil told a different story, falling to $79.45 per barrel on August 5 from $90.74 a week earlier, a decline of 12.4%. Lower oil prices will reduce import costs for China, but they also reflect softer fuel demand both domestically and globally.