Copper prices fell -0.91% to settle at 814.8, driven by a stronger dollar that touched levels near 103.8, dampening hopes for a quick cut in interest rates by the Federal Reserve. Although China’s central bank cut benchmark lending rates to record lows, one- and five-year lending prime rates were cut by 25 basis points to 3.1% and 3.6%, respectively, as pressure from a stronger dollar outweighed the positive impact on China’s economy.
On supply, copper stocks in Shanghai warehouses rose 7.6%, indicating an increase in supplies. Meanwhile, copper output saw a 10.7% rise in August, the highest monthly output of the year, although year-to-date output remained below 2023 levels. According to the International Copper Study Group (ICSG), the global copper market posted a surplus of 91,000 metric tonnes in July, up from a surplus of 113,000 metric tonnes in June.
