Copper prices rose for the third consecutive day, continuing their recovery from a two-month low. This rebound is attributed to investor anticipation of potential stimulus measures in China and possible interest-rate cuts in the United States.
Federal Reserve Chair Jerome Powell noted on Tuesday that recent economic data indicates a downward trend in inflation. However, he emphasized the need for more evidence before the Federal Reserve considers lowering borrowing costs and did not provide a specific timeline for potential rate cuts. Additionally, copper prices have been buoyed by expectations of growth-boosting policies from China’s Third Plenum policy meeting later this month, according to the Chaos Ternary Research Institute.
Despite this recent uptick, copper prices had previously fallen from a record high of over $11,100 per ton in May, driven down by increasing global inventories and weak demand from China.
The recent rise in copper prices is also linked to a surge in withdrawals from London Metal Exchange warehouses in Gwangyang, South Korea. As of 3:45 p.m. on the LME, copper prices increased by 0.7% to $9,701 per ton. Other base metals showed mixed performance, with nickel declining slightly and aluminum experiencing a modest rise.
