Copper climbs as Fed hike clears uncertainty

Copper prices rose on Monday as the US Federal Reserve's recent interest rate hike cleared months of uncertainty over rates, according to market analysts. The benchmark three-month copper on the London Metal Exchange climbed 0.06% to $14,530.5 a metric ton. The price touched a peak of $14,600.50 a ton earlier in the day, the highest since September 10. On the Shanghai Futures Exchange, the most-traded copper contract increased 0.37% to 109,940 yuan ($16,419.49) a ton.

Analysts from Everbright Futures attributed the market stability to the Fed's rate hike, which removed the biggest near-term uncertainty in the copper market. Despite the overall tightness of mines and ultra-low Chinese domestic inventories, strong demand in China and the upcoming National Day holiday in China provided support for prices. The Yangshan copper index, indicating Chinese demand for imported copper, reached $124 a ton, its highest level in nearly four years.

Other factors influencing copper prices included oil prices, which dropped to their lowest level in over a week following new threats between the US and Iran. While the US President, Donald Trump, expressed openness to meeting President Masoud Pezeshkian, copper prices were still affected by the ongoing war, which threatened global economic growth.

Among other LME metals, aluminum dipped, zinc gained, lead added, nickel gained, and tin ticked slightly higher. On the SHFE, aluminum decreased, zinc rose, lead increased, nickel dropped, and tin gained.