Copper continues to rebound in the market, showing signs of recovery after hitting a five-month low. Recent orders to withdraw copper from London Metal Exchange warehouses indicate that China’s demand slump may have bottomed out.
The surge in three-month futures prices by 1.3% in London is partly attributed to the significant cancellation of LME copper units, marking the largest decline since April. This comes in the wake of a decline in copper prices by 19% following a surge in cathode exports from China and weak industrial data, which raised concerns about demand prospects, especially in AI data centers.
Despite the initial setbacks, a reopening of the arbitrage window for refined copper imports to China has driven premiums for the metal higher in the region. Additionally, the increase in orders to withdraw units from the LME suggests a positive shift in the market sentiment.
Global investors are cautiously returning to equities, bonds, and commodities amidst fears of a global economic slowdown. Copper prices rose last week, buoyed by resilient US labor market data, after facing a sustained period of losses due to economic uncertainties.
Jinrui Futures Co. predicts that copper could rally towards $9,100 a ton as concerns of a global recession subside. However, Macquarie Group remains cautious, noting a global copper surplus that could persist over the next two years, leading to an average price of $9,000 a ton for the rest of the quarter and $9,175 in 2025.
As the market continues to navigate through uncertainties, investors are advised to monitor macroeconomic indicators and inventory drawdowns for clearer insights into the future trends of copper prices.
Frequently Asked Questions (FAQs) Related to the Above News
What recent signals indicate a rebound in copper prices?
Recent orders to withdraw copper from London Metal Exchange warehouses suggest that China's demand slump may have bottomed out, leading to a rebound in copper prices.
What factors are contributing to the rebound in copper prices?
The reopening of the arbitrage window for refined copper imports to China, an increase in orders to withdraw units from the LME, and a surge in three-month futures prices in London are all contributing to the rebound in copper prices.
What are global investors returning to amidst fears of a global economic slowdown?
Global investors are cautiously returning to equities, bonds, and commodities as copper prices show signs of recovery after facing a sustained period of losses due to economic uncertainties.
What are the price predictions for copper in the near future?
Jinrui Futures Co. predicts that copper could rally towards $9,100 a ton as concerns of a global recession subside. However, Macquarie Group remains cautious, projecting an average price of $9,000 a ton for the rest of the quarter and $9,175 in 2025 due to a potential global copper surplus.
What should investors monitor for insights into the future trends of copper prices?
Investors are advised to monitor macroeconomic indicators and inventory drawdowns for clearer insights into the future trends of copper prices as the market navigates through uncertainties.
Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.
