LME copper futures hit $9,804 per ton, highest level in five months.
COMEX May copper futures peaked at $9,900 intraday.
China’s economic stimulus boosts demand expectations.
U.S. tariff review on copper imports adds market uncertainty.
Chile’s copper output in January fell 24% MoM, lowest in nine months.
Financial analysts forecast copper prices to surpass $10,000 within three months.
Opinion
Copper prices are rising due to global supply chain disruptions and policy changes. While China’s stimulus and U.S. trade policies remain key drivers, supply shortages could extend the short-term bullish trend. However, China’s real estate market slowdown remains a risk, as falling new home prices indicate weaker construction demand for copper in the long term.
Core Sell Point
Copper prices are expected to rise further amid China’s stimulus and supply constraints, but U.S. tariff policies and a weakening Chinese real estate market could increase market volatility.
On March 17 (local time), London Metal Exchange (LME) copper futures closed at $9,804 per ton, continuing their strong rally. New York Commodity Exchange (COMEX) May copper futures also surged to $9,900 intraday. Copper prices are approaching their highest level in five months, with analysts predicting a breakthrough past $10,000 within three months if supply constraints persist.
The key driver behind copper’s rise is China’s economic stimulus measures. The Chinese government recently announced new policies to boost domestic consumption, while industrial production and retail sales exceeded market expectations, fueling optimism about increased raw material demand. Meanwhile, the U.S. is considering imposing tariffs on copper imports, raising concerns over potential disruptions in global supply chains. In response, raw material companies have begun preemptively shipping copper to the U.S.
On the supply side, risks persist. Chile, the world’s largest copper producer, saw a 24% drop in production in January, reaching its lowest level in nine months. State-owned mining giant Codelco has warned that production could decline further due to ongoing mine maintenance.
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