US Fed Rate Hike Triggers Risk-Aversion as Copper Prices Edge Up
The US Federal Reserve has raised interest rates for the first time in 2026, increasing the federal funds rate target range to 3.75%-4%. This decision has sparked risk-aversion sentiment among investors.
Copper prices have edged up despite this development, with LME copper closing at $14,250/mt on Thursday, September 17, and SHFE copper closing at 107,960 yuan/mt. Trading volume for LME copper was 16,000 lots, while open interest stood at 261,000 lots.
The market expects supply-side arrivals of imported copper to increase in the near term, but this is unlikely to have a substantial impact in the short term due to delays in vessel arrivals and customs clearance. Downstream enterprises are wary of high prices and purchases remain limited to essential needs.