15.10.202506:42:31UTC+00Copper Rises on US Rate Cut Bets

Copper futures surged back above $5 per pound on Wednesday, recovering losses from the previous session. This rebound was sparked by dovish comments from Fed Chair Powell, which bolstered expectations for further interest rate cuts in the US, thereby brightening the global demand outlook. In China, the world's largest consumer of copper, recent data highlighted ongoing deflationary pressures, intensifying hopes for more economic stimulus. Premier Li Qiang reiterated his call to enhance domestic consumption and address unfair competition among companies. However, trade sentiments remain cautious after President Trump threatened China with a cooking oil embargo in response to their boycott of US soybeans. Despite this, a meeting between President Trump and President Xi Jinping is anticipated in South Korea later this month to potentially ease these tensions. Additionally, global supply concerns remain as production disruptions continue in Chile and Indonesia. Codelco reported its weakest monthly output in over two decades, and operations at the Grasberg mine are still constrained following last month’s tragic accident.