05.03.202605:48:59UTC+00Copper Steadies on Supply Tightness

Copper futures were steady around $5.85 per pound on Thursday, consolidating the prior session’s gains amid persistently tight supply conditions. Major copper mines continue to experience operational disruptions, leading producers to stick with conservative output guidance. Global mine production is expected to rise by only about 1% this year, and the concentrate market is likely to remain constrained despite ongoing expansions in smelting and processing capacity.

On the demand side, robust consumption driven by the energy transition and the build-out of data-center infrastructure is projected to keep the copper market undersupplied for the coming years. At the same time, investors are closely monitoring geopolitical developments in the Middle East as the US-Israel conflict with Iran enters its sixth day.

In top consumer China, authorities have set a more modest economic growth target of 4.5%–5%, as policymakers grapple with entrenched deflationary pressures and the impact of higher US tariffs.