Fed Rate Decision Stabilizes Copper Prices Near Recent Highs

Copper prices have been steady near recent highs after the US Federal Reserve's decision to keep interest rates unchanged. This move has removed one of the main uncertainties that had been weighing on copper prices.

The physical market for copper is currently tight due to constrained mine supply and low inventories in China. The Yangshan premium, which measures the price difference between imported and locally sourced copper, has reached $124 a ton, its highest level in nearly four years. This premium encourages traders and manufacturers to ship more metal into China, leaving less available elsewhere and supporting prices even if the macroeconomic backdrop is uncertain.

The next key test for copper prices will be whether Chinese buyers restock ahead of the upcoming National Day holiday, a seasonal moment that can boost short-term demand for imports. If they do, it would reinforce the physical bid and keep prices supported near recent highs.