Copper prices experienced an uptick on Monday, buoyed by diminishing concerns of a U.S. recession after robust economic data was released the previous week. Additionally, a decline in inventories in China, the world’s largest consumer of copper, further supported the price increase.
On the London Metal Exchange, three-month copper saw a 0.9% rise, reaching $9,201.50 per metric ton early in the day, continuing its momentum after recording its first weekly gain in six weeks. Similarly, the September copper contract on the Shanghai Futures Exchange edged up by 0.5% to 73,960 yuan ($10,345.50) per ton.
The strong performance of copper followed positive reports on U.S. retail sales, inflation, and producer prices, which helped to ease fears of an economic slowdown triggered by earlier disappointing employment data. Investors are now closely watching the Federal Reserve, with the minutes from the July policy meeting and Chair Jerome Powell’s upcoming speech at Jackson Hole expected to play significant roles in shaping currency movements and market sentiment this week.
In a positive development for global copper supply, the main union at BHP’s Escondida mine in Chile accepted an improved wage offer from management, resulting in the suspension of a potential strike. This mine is significant, contributing nearly 5% to global copper supply in 2023, and the agreement has alleviated concerns of a prolonged disruption.
The market also saw gains in other metals, with aluminium, tin, zinc, lead, and nickel all posting modest increases on the London Metal Exchange. Aluminium rose by 0.5% to $2,378 per ton, tin by 0.6% to $32,095, zinc by 0.8% to $2,785, lead by 0.7% to $2,051.50, and nickel by 0.4% to $16,430. Meanwhile, in the Shanghai Futures Exchange, aluminium saw a more pronounced rise of 1.3% to 19,545 yuan per ton, with zinc, lead, tin, and nickel also showing gains.
The combination of positive economic signals from the U.S., stabilising supply concerns, and declining inventories in China has led to a boost in copper prices, alongside gains in other key metals.
Jubilee Metals Group plc (LON:JLP) is a diversified metal recovery business with a world-class portfolio of projects in South Africa and Zambia. The Company’s expanding multi-project portfolio across South Africa and Zambia provides exposure to a broad commodity basket including Platinum Group Metals, chrome, lead, zinc, vanadium, copper and cobalt.
