MARKET COMMENTARY
3M LME copper traded between $8714 and $9453 in August. On 05.08.2024, it tested $8714, its lowest level since March 13, as worsening demand outlooks in the world’s two largest economies, China and the U.S., led to a sell off of the metal used in energy and construction. It was supported at $9453, its highest level in nearly six weeks, on expectations that a possible U.S. interest rate cut in September would provide support for copper prices. 3M LME copper ended August with a 0.12% gain at $9251.5.
3M LME copper suffered losses at the start of its 32nd week as worsening demand outlook in China and the US, the world's two largest economies, led to selling of the metal used in energy and construction. Supported by rising copper consumption in China and expectations of larger interest rate cuts by the US Federal Reserve later this year, LME copper could not recoup its losses at the beginning of the week and finished the week down 2.82% at $8831.
Copper prices were supported by easing concerns about China’s economy at the start of a 33rd week. However, they fell on 13.08.2024 as a larger than expected drop in Chinese credits soured confidence. However, they limited losses as U.S. data boosted interest rate cut hopes. LME copper, which came under pressure after U.S. inflation data came in line with expectations on 14.08.2024, was supported by potential supply risks related to the strike at BHP’s Escondida mine. It rose to $9,184.5 on 16.08.2024. Copper prices ended the week up 3.92% at $9,177.5, encouraged by U.S. data that eased concerns about mineral supply and fears of an impending recession in the world’s largest economy.
3M LME copper, although it started the 34th week with a gain, fell to $9120 under pressure as investors ended their short covering rally and demand concerns in major consumer China continued. It closed the week with a 1.31% gain at $9298, as Powell's statements and good data from the US indicated that recession concerns in the US were easing.
3M LME copper started the week on a gain, testing $9453 on optimism that a possible September interest rate cut in the US, which remained closed for a bank holiday at the beginning of the 34th week, could help boost demand for the red metal. It fell to $9177 on 29.08.2024 as weak economic data and demand concerns in major economies weighed on prices. LME copper ended the week down 0.50% at $9251.5.
