Copper Eases on Fed Rate Hike Concerns
Copper futures slipped to around $6.55 per pound on Monday, ending a two-day rally as stronger-than-expected US jobs data strengthened expectations for a Federal Reserve rate hike this month, weighing on the demand outlook for industrial metals. Investors also assessed rising inflation risks after oil prices extended their gains as the US and Iran exchanged ...
Copper prices dropped to around $6.55 per pound on Monday, marking the conclusion of a two-day surge. This decline came as robust US jobs data raised anticipations of a Federal Reserve rate hike this month, casting a shadow over the demand outlook for industrial metals. Concerns about inflation also rose following oil prices' continued increase, following the United States and Iran's weekend exchange of ship strikes.
Despite this, copper remained near record highs, due to ongoing worries about supply. Experts highlighted a recent export ban in Congo, reduced production from key suppliers Chile and Peru, and disruptions stemming from El Nino as contributing factors. Reports indicated that the leading producer, Chile, had its weakest second-quarter output in at least 19 years.
The nation also reduced its full-year production forecast for the second straight quarter, now anticipating a 2.6% decline. Simultaneously, uncertainty surrounding tariffs continues to stimulate copper shipments to the United States, driving Comex inventories to record levels.
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