FX.co ★ Copper Firms on Codelco Premium Push

Copper futures have surged to approximately $5.10 per pound, marking a four-week peak following record-high price offers from Chilean producer Codelco to Chinese clients. This shift indicates a potential emphasis on prioritizing U.S. consumers. Codelco's current offers carry a premium of $350 per ton above London Metal Exchange benchmarks, a significant increase from the $89 per ton premium established in the previous year's negotiations. This development underscores a bullish outlook for the long-term copper market, as the delicate balance between supply and demand is projected to shift towards greater deficits in the years ahead. Copper prices also found support in the expectation that the U.S. Federal Reserve might adopt a more aggressive approach to monetary easing. The market currently estimates about an 85% probability of a 25 basis point interest rate reduction in December, a substantial increase from roughly 30% the previous week, with anticipation of three further cuts by the close of 2026.