MARKET COMMENTARY
3M LME copper traded in the range of $9.739-$11.104,5 in May. Although it started May cautiously, it tested the lowest level of the month at $9.739 on Thursday, 02.05.2024. LME copper, which rose after seeing this level, tested its all-time high level of $11.104.5 on Monday, 20.05.2024, with the support of China's real estate support measures and better-than-expected industrial data, and then faced losses under the pressure of weak demand in China and the Fed's hawkish minutes. 3M LME copper closed May with a 0.93% gain at $10.125.
Copper prices tested $10.208, the highest level since April 2022, but above the $10.000 level, as supply concerns highlighted by BHP Group's takeover bid for Anglo American and China's manufacturing PMI index reached 50.4 in April It faced losses due to the impact of profit sales and completed the 1st week of May with a loss of 0.46% at $9.914.
After the London Metal Exchange remained closed for Bank Holiday on May 6, LME copper rose as high as $10.118, boosted by renewed hopes for a US interest rate cut this year, promises of support from Chinese officials and increased risk appetite spreading through equity markets, China's improving trade. It completed the 2nd week of May at $10.040 with a 1.27% gain, supported by data and real estate support measures.
3M LME copper reached its highest level since April 2022 at $10.720 last week, as the inflation data announced in the USA increased expectations of an interest rate cut, the support of increasing Chinese demand and supply cuts, and strong Chinese industrial production data strengthened expectations for demand. tested it and completed the 3rd week of May at $10.715 with a 6.72% gain.
3M LME copper, after testing an all-time high of $11.104,5 on Monday (20.05.2024), supported by China's real estate support measures and better-than-expected industry data, ended the 4th week with of May a 3.56% loss at $10334, under the pressure of weak demand in China and the Fed's hawkish minutes.
The London Metal Exchange remained closed on 27 May due to Bank Holiday. 3M LME copper ended the last week od May down 2.56% at $10.069, remaining under pressure after Wednesday's Beige Book report showed economic activity continued to strengthen but inflation increased and Chinese manufacturing data disappointed.