12.09.202505:49:10UTC+00Copper Rises to 6-Week High on Supply Concerns

Copper futures surged past $4.6 per pound in mid-September, reaching a six-week peak, driven by tightening global supply dynamics. China announced a production decrease of approximately 5% in September, which equates to a reduction of around 500,000 tonnes of refined copper from the global market. This decline occurs amid persistently low inventory levels, with London Metal Exchange stockpiles remaining about 40% below their five-year average. Supply constraints intensified following confirmation from major producer Freeport-McMoRan that its Grasberg mine in Indonesia will remain closed while rescue operations for seven missing workers continue. On the macroeconomic front, market sentiment improved further due to the anticipation of more accommodative US monetary policy. Softer labor market data and moderate inflation figures are bolstering expectations for more significant rate cuts by the Federal Reserve. Currently, market participants are forecasting roughly a 93% probability of a 25 basis point reduction at the Fed’s meeting on September 17, with increasing speculation of a potential larger half-point cut.