COPPER prices climbed towards record territory as the US and China moved closer to a comprehensive trade agreement, alleviating concerns about global economic stability.
Bloomberg News reported on Monday the London Metal Exchange benchmark rose 1.2% to $11,094 per ton, leaving the industrial metal just $10.50 below its record established in early 2024. Trade negotiations concluded on Sunday, paving the way for Presidents Donald Trump and Xi Jinping to seal an accord later this week, the newswire said.
Washington’s threat of imposing 100% tariffs has been removed, whilst Beijing agreed to suspend plans for expanded rare earth export restrictions for twelve months, said Bloomberg News citing US Treasury Secretary Scott Bessent.
The metal reached an all-time peak of $11,104.5/t last May before touching $11,000 again earlier this month. Prices have gained roughly 25% this year on the LME, driven primarily by production disruptions at major mining operations.
Freeport-McMoRan reduced its copper sales forecast in September following a fatal incident at Indonesia’s Grasberg mine. Meanwhile, Ivanhoe Mines’ Kamoa-Kakula facility in the Democratic Republic of Congo has experienced significant operational setbacks.
The dollar’s eight percent decline since mid-January has provided additional support, making dollar-denominated commodities more appealing as investors anticipate further Federal Reserve interest rate reductions.
Long-term prospects remain robust, with BHP Group forecasting global copper demand will surge 70% by 2050 amid the energy transition, said Bloomberg News.
