Copper futures held near $6.30 per pound on Tuesday after coming under pressure in recent sessions, as robust trade data from top consumer China shored up the demand outlook. Chinese exports surged 19.4% in May to a record $376.8 billion, far exceeding forecasts, driven by strong global appetite for AI-related technology and renewable energy products.
The red metal also found support from easing geopolitical risks after Iran and Israel agreed to halt attacks against each other. The de-escalation tempered concerns that a spike in oil prices could stoke inflation, trigger tighter monetary policy, and ultimately undermine global growth and metals demand.
On the supply side, Jefferies expects copper prices to stay elevated for longer than previously projected, pointing to an average annual supply shortfall of 491,000 tons through 2030 and a slower-than-expected production recovery at the Grasberg mine.
