Copper rallies to record on US-China hopes and supply setbacks
Copper rallied to a record, with the US and China on the cusp of a sweeping deal to dial down trade tensions, while a series of supply setbacks at mines have tightened the global market.
Three-month futures surged to US$11,142 (RM46,690.55) a tonne on the London Metal Exchange, topping the peak set in 2024. Year to date, the metal that’s an industrial staple and proxy for global growth has surged by more than a quarter.
In Asia, US President Donald Trump is scheduled to meet with Chinese counterpart Xi Jinping at a bilateral summit on the sidelines of the Apec gathering in South Korea on Thursday. Ahead of that, Trump has talked up prospects for a deal between the world’s two largest economies.
Copper’s record adds a fresh twist to what’s been a tumultuous year for one of the world’s most important commodities. Prices have been roiled by Trump’s trade war and sectoral sanctions, which drew vast quantities of metal into the US. At the same time, there has been a spate of mishaps at major mines, including a mudslide at Freeport McMoRan Inc’s Grasberg mine in Indonesia.
On the demand front, there’s widespread optimism about the need for greater volumes of copper to service the energy transition and build-out of artificial intelligence data centres. In addition, China has pledged to “significantly” boost the share of consumption in its economy.
Futures traded at US$11,140 a tonne at 3.03pm in Singapore.
Source: Theedgemalaysia
