Copper rose to a 14-month high as expectations for US rate cuts and threats to supply added impetus to a rally that’s been underway since early February.
It climbed for a fourth session on the London Metal Exchange after Federal Reserve Chair Jerome Powell said it would likely be appropriate to begin lowering borrowing costs “at some point this year.” Copper touched $9 380 a ton, the highest intraday level since late January 2023, following a 3% surge on Wednesday after a gauge of Chinese manufacturing came in better-than-forecast.
The industrial metal has rallied 15% since this year’s low in February, with gains also driven by supply concerns. Chinese smelters, which produce more than half of the world’s refined copper, are moving closer to implementing a joint output cut after tightening ore supplies drove processing fees to near zero.
Copper rose 0.7% to $9,329 a ton on the LME as of 10:56 a.m. in Singapore time. Aluminum advanced 0.8% and zinc added 0.7%. Chinese markets are closed for holidays.
US nonfarm payroll data will be released on Friday, and will possibly firm up expectations for when the Fed will pivot to rate cuts.