Copper Surges on China Supply Tightness and Equity Rebound

Copper prices rose for the fifth consecutive session on Monday, driven by supply tightness in China and a rebound in equity markets. The December-delivery Comex copper contract climbed as much as 3.3% to $6.8410 per pound, its highest level since September 10th.

The metal's price surge was also influenced by the fact that Chinese fabricators are replenishing their inventories before a holiday and a break in October, according to Ole Hansen of Saxo Bank. This led to an increase in speculative purchases, with funds resuming net long exposure to Comex copper.

In contrast to China, the United States presents a picture of oversupply, with Comex warehouses containing 696,204 tonnes of copper, or roughly 69% of all copper tracked by exchanges. The US stockpile has stopped expanding, with a weekly drawdown recorded last week.