Last week, Copper prices showed volatility. LME Copper was at $9,793 per metric ton after rising to $9,822.5, while MCX Copper was steady at ₹899.80. The market is expected to be affected by China’s stimulus plans and Chile’s copper production slowdown, with major banks predicting tight supplies and price volatility in the coming months.
Copper prices were volatile last week, with MCX Copper ending below ₹900. LME Copper prices rose 0.45% to open at $9,797/mt, peak at $9,822.5/mt and end at $9,793/mt.
Macroeconomically, inflation expectations hit a new high of 4.9%, and the US Consumer Confidence Index fell for the third consecutive month. China’s economic data also revealed weaker-than-expected credit numbers, fueling concerns about the country’s industrial demand.
Copper prices were also affected by geopolitical events. Before the tariffs were imposed, US net copper imports were expected to increase by 50% to 100%, which could push domestic copper inventories to 300K–400K tonnes by the end of Q3. Meanwhile, production in Chile, the world’s largest copper producer, has seen a sharp 24% month-on-month decline, further tightening global supplies.
It forecasts LME prices to reach $10,000 per metric ton in the coming three months. The bank added that seasonal increases in demand and supply disruptions could keep global markets tight. The situation is complicated by the upcoming US tariffs, as higher import duties could reduce demand for copper and increase short-term price volatility.
