Copper Prices Face Largest Weekly Loss Since May
Copper futures are tracking their steepest weekly decline since May due to industrial weakness in China and geopolitical instability.
Copper futures on the London Metal Exchange are on track for their largest weekly loss since May, with prices expected to finish the week approximately 2% lower. The decline is driven by industrial weakness in China, the world's largest consumer of the metal, and high energy costs. Geopolitical instability resulting from the US-Iran war has further pressured the market.
Despite the weekly drop, Bank of America Corp. analysts noted that while the Middle East conflict may limit the upside for base metals, supply tightness continues to keep prices consolidated at high levels. This tightness is attributed to strike action at a major mine in Chile and a strategic shift of refined metal into the United States to avoid potential tariffs.
Market participants are now focusing on September jobs data from the United States. This data is expected to influence the monetary policy decisions of the Federal Reserve System, which could provide future support for copper prices.
