US Fed Rate Decision Neutral, Geopolitical Risks Heat Up Copper Prices

The US Federal Reserve (Fed) kept interest rates unchanged at its July meeting, maintaining a neutral stance. This decision was in line with market expectations.

Copper prices continued to consolidate their range as geopolitical tensions increased following Trump's statement that he would strike Iran in response to the attack on US forces in the Middle East.

Glencore reported a 15% YoY increase in copper production in H1, driven by higher ore grades at its core mines. The company's trading business is expected to generate about $3.3 billion in adjusted core earnings, with full-year results likely to exceed the upper end of guidance.

Copper prices are expected to drift higher in a narrow range today due to moderate just-in-time procurement and month-end restocking demand. However, low-priced circulating cargoes were scarce, contributing to tight market supply.