FX.co ★ Copper Slips to 2-Week Low

Copper futures experienced a decline to below $4.95 per pound on Friday, reaching their lowest point in two weeks. This drop is attributed to indications of weakened demand in China, the world's largest consumer, alongside expectations that the US Federal Reserve will maintain interest rates in December. In China, demand continues to struggle due to an ongoing downturn in the property sector and reduced investments in the power grid. Reports indicate that Beijing might initiate new measures to bolster the ailing real estate market. Notably, China's imports of copper cathode decreased by 22.1% year on year in October and saw a 15.7% month-on-month decline. The copper market is further strained by the Fed's cautious approach to adjusting policies amid economic uncertainties. Additionally, Freeport McMoRan has announced plans to restart production at Indonesia’s Grasberg mine by July 2026, following a suspension in September caused by flooding from wet mud in one of the pits, which tragically resulted in seven fatalities.