Rising copper demand in China drives price increase

Copper prices rose on Monday, driven by improved demand in China and declining inventories, while other base metals experienced declines due to a stronger U.S. dollar.

On the London Metal Exchange (LME), copper prices increased by 0.3 percent to $9,508.50 per metric tonne.

This uptick was attributed to China’s seasonal demand and lower stock levels, according to Access Bank’s daily market update.

In contrast, the most-traded copper contract on the Shanghai Futures Exchange (SHFE) fell by 0.4 percent. “Copper consumption in China is picking up, with SHFE copper stocks decreasing to 164,938 tons—more than halved since June,” the update noted.

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Additionally, the Yangshan copper premium, an indicator of import demand, reached a nine-month high last week.

The Federal Reserve’s recent rate cut had also positively impacted the economic outlook, further boosting copper demand.

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