Copper price sees strong week with boost from Fed, China demand

From Mining.com

Copper rose to a two-month high to cap a strong week for metals, helped by the Federal Reserve’s half-point rate cut.

Base metals have advanced with other global risk assets after Fed Chair Jerome Powell kicked off the bank’s easing cycle on Wednesday, while US jobless data reinforced expectations of a soft landing for the world’s biggest economy.

In China, too, conditions in metals market are showing signs of improvement. Premiums on imported copper rose to the highest since the start of 2024 this week, and inventories on the Shanghai Futures Exchange dropped.

“Macro conditions are turning positive now,” said Xu Wanqiu, an analyst with Cofco Futures Co.. “People are no longer talking about recessions and the consensus is that the US economy will be fine, inflation will slow.”