MARKET COMMENTARY
3M LME copper traded between $9435.5 and $10120 in October. Copper prices tested the highest level since June 7 at $10158 on October 3, due to rising demand expectations following the escalating conflicts in the Middle East and the announcement of stimulus measures by leading metals consumer China. Copper prices, which fell in the middle of the month after rising at the beginning of the month, fell to $9435.5 on October 17 due to uncertainty about the economic recovery of the largest consumer after the stimulus plans announced in China did not meet expectations and the pressure of the strengthening US dollar, and closed October with a 3.22% loss at $9547.
In the first week of October, copper prices tested the highest level since June 7 at $10,158, due to rising demand expectations following escalating conflicts in the Middle East and a series of stimulus measures by leading metal consumer China. They gave back their gains and finished the week at $9,956, down 0.18%, due to low trading volume as markets in China remained closed for a one-week public holiday, as well as the impact of profit taking from high levels.
3M LME copper remained under pressure early in the second week of October due to a stronger dollar, but limited losses on optimism that demand in the country will pick up ahead of a briefing on China’s policies to support economic growth. LME copper, which limited losses on hopes that China will announce a fiscal stimulus package to boost demand for the metal, ended the week down 1.54% at $9803, as recent price gains weighed on physical demand.
Copper prices came under pressure early in the third week of October on a stronger dollar, but limited losses on optimism that demand in top consumer China will pick up ahead of a briefing on the country’s policies to support economic growth. LME copper, which limited losses on hopes that China will announce a fiscal stimulus package to boost demand for the metal, ended the week down 1.54% at $9803 as a recent rally weighed on physical demand.
3M LME copper rose to $9758 at the start of the fourth week of October on expectations that interest rate cuts in China would ease property woes and strengthen copper demand. However, it gave back its gains and finished the week down 0.61% at $9563.5, under pressure from a rising dollar after Trump’s chances of winning the US presidential election revived.
3M LME copper fell to $9488 in the last week of October as expectations of a Trump presidential election grew. But it recouped some of its losses and ended the week down 0.26% at $9539 after a report from leading metals consumer China revived hopes it would announce a major fiscal stimulus package.