2025.11.2405:50:14UTC+00Copper Stabilizes on Dovish Fed Bets

Copper prices held steady at approximately $5 per pound on Monday, maintaining gains from the previous session. This stability came after dovish remarks from a senior US Federal Reserve official heightened expectations for an interest rate reduction next month. The market now anticipates a 69% probability of a 25 basis point cut in December, a noticeable increase from the 44% likelihood priced in just a week ago.

Supporting the price levels are signs of constrained supply, evidenced by Chile's state-owned Codelco proposing an unprecedented $330 per ton premium for metal sold to South Korea, surpassing the $325 per ton premium offered to European clients. Additionally, Freeport-McMoRan announced plans to resume production at Indonesia’s Grasberg mine by July 2026. This decision follows a suspension of operations in September, due to a pit being flooded with wet mud, an incident that tragically resulted in seven fatalities.

In contrast, copper cathode imports by China, the world’s largest consumer, experienced a decline, with October figures showing a 22.1% decrease year-on-year and a 15.7% reduction compared to the previous month.