09.12.202504:33:51UTC+00Copper Hovers Near Multi-Month Highs

Copper futures in the United States declined to approximately $5.33 per pound on Tuesday. This downturn reflects investor concerns regarding demand fluctuations from China, the world's largest consumer of copper. Chinese leadership has conveyed that increasing domestic demand will be a strategic focus in 2026, although they plan to adopt a measured approach to stimulus. This involves balancing the need for more relaxed fiscal and monetary policies with the imperative of managing financial risks. Despite these uncertainties, copper prices have remained near their highest in over four months, bolstered by ongoing supply challenges and fears of a potential supply shortage in the London market. Notably, significant withdrawals from London Metal Exchange warehouses last month were likely driven by worries about possible US tariffs on refined copper in the coming year. Additionally, copper prices found support from the expectation of a 25 basis point interest rate cut by the US Federal Reserve this week, with predictions for 2-3 further reductions expected in 2026.