MARKET COMMENTARY
3M LME copper traded in September between $8,890-$10,158. Recent economic data, especially the manufacturing PMI released in China, indicated that the economy was still weak. Investors expected the Chinese government to take new steps to support the economy. It fell to $8,890 on Wednesday, September 4, 2024, under pressure from the steps to support the economy that did not come after the PMI data was released. Towards the end of the month, it tested the highest level since June 7 at $10,158, as demand expectations increased following a series of incentive measures from leading metal consumer China, and completed September with a 6.63% gain at $9,865.
Copper prices tested the lowest level since August 12 at $8,890 on Wednesday, September 4, 2024, due to the impact of weak production data from China, the strong dollar and demand concerns. LME copper recovered some of its losses ahead of the US nonfarm payrolls data due to the effect of the upcoming US elections and the cautious attitude around possible economic policies that could affect demand for commodities, but finished the 36th week down 3.22% at $8954.
3M LME copper traded between $8,941 and $9,327 for a 37th week. It rose ahead of US inflation figures due on Wednesday, September 11, 2024. It finished the week at $9,257, up 3.38% on Friday following US consumer inflation data, as stimulus hopes rose in leading metals consumer China following efforts by Chinese President Xi Jinping to help the country meet its annual economic targets.
Following the Fed’s long awaited rate cut, LME copper rose to a two month high at $9,599.5. All LME metals were positive for the 38th week. While a renewed rally in the dollar limited copper’s gains, optimism about more stimulus from China kept copper above $9,450.
Copper prices traded between $9,381.5-$10,095 for the 39th week. Copper prices rose to $10,095 with the support of China's largest financial support program since the pandemic and the decline in the dollar, and finished the week with a 5.14% gain at $9,973.5. 3M LME copper tested the highest level since June 7 at $10,158 on the last day of September, then ended the month at $9865 due to profit taking.
