Copper futures rose above $6.50 per pound on Monday, retracing part of last week’s losses after weaker-than-expected US employment data eased pressure on the Federal Reserve to implement further interest rate hikes. Higher rates typically weigh on non-yielding assets such as commodities.
Sentiment was also underpinned by robust longer-term demand expectations linked to the global build-out of data centers and renewable energy infrastructure. However, the short-term outlook remained constrained by signs of slowing industrial activity in China, the world’s largest copper consumer.
On the supply side, Chilean output in August fell to its lowest level since February 2011. At the same time, workers at Antofagasta’s Centinela mine voted to strike after wage negotiations collapsed, raising the risk of further disruptions.
Elsewhere, the Trump administration has so far postponed a decision on tariffs for refined copper. Earlier threats of US tariffs on refined metals had led traders to divert more shipments into American warehouses, contributing to a rally in copper prices.
