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Base metals enjoy strong week with boost from Fed, China demand

20th September 2024

By: Bloomberg

  

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Copper surged to a two-month high to cap a strong week for metals, helped by the Federal Reserve’s half-point rate cut.

Base metals have advanced with other global risk assets after Fed Chair Jerome Powell kicked off the bank’s easing cycle on Wednesday, while US jobless data reinforced expectations of a soft landing for the world’s biggest economy.

In China, too, conditions in metals market are showing signs of improvement. Premiums on imported copper rose to the highest since the start of 2024 this week, and inventories have been coming down.

Base metals sank to multi-month lows in August amid disappointment over Chinese demand and a cloudy outlook for the global economy. The Fed’s rate cut has soothed sentiment for now, but uncertainty over the US presidential election is subduing some risk appetite.

Copper was 0.7% higher to $9 580 a ton on the London Metal Exchange by 2:22 p.m. Shanghai time. It was on track for a 2.9% weekly gain. Aluminum, zinc and nickel also rose.

Iron-ore futures were trading 1.4% lower.

Edited by Bloomberg

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