The weakening of the US dollar and strong demand from China push LME copper prices close to the 10,000 yuan mark
LME copper prices are approaching USD 10,000 per ton, due to a weaker dollar and strong demand from China. Copper prices have risen for four consecutive weeks, reaching a high of USD 9,928 on Monday. The market expects the Federal Reserve to cut interest rates, making dollar-denominated commodities cheaper. Despite the growth in Chinese demand, Goldman Sachs warns that weak economic data may put pressure on the industry, maintaining its year-end LME copper price forecast at USD 9,700
The Zhitong Finance APP noted that on Monday, the London Metal Exchange (LME) copper price approached the $10,000 per ton mark, driven by a weaker dollar and resilient end demand, continuing a four-week upward trend.
LME copper prices rose as much as 0.3% during the day to $9,928 per ton, with the August contract up 3% cumulatively. COMEX copper futures remained stable, with the main contract quoted at $4.598 per pound (equivalent to $10,137 per ton).
Driving Factors
The dollar weakened in response, as the market expects the Federal Reserve to cut interest rates at the next meeting, making dollar-denominated commodities cheaper for overseas buyers.
Chinese demand also remained resilient, but showed signs of marginal cooling. According to Zijin Mining Group data, China's apparent consumption of refined copper is expected to grow by about 10% year-on-year in the first half of 2025.
However, Goldman Sachs analysts warned that while expectations of U.S. interest rate cuts and supportive policies provide support, a loosening physical market and persistently weak economic data could put pressure on the industry.
The bank reiterated its year-end forecast for LME copper prices at $9,700 per ton last week and maintained a bearish stance on aluminum
