Copper prices are climbing toward their May 2024 record of $11,104.50 per tonne, driven by renewed optimism over US-China trade relations, continued supply disruptions, and expectations of another Federal Reserve interest rate cut, according to ING commodity strategists Ewa Manthey and Warren Patterson.
ING notes that easing trade tensions between the world’s two largest economies could remove one of the key downside risks for the metal. “Copper is edging closer to the record high it reached in May 2024. A US-China deal would eliminate a major headwind for the market,” the analysts said.
They added that “with supply challenges mounting and trade sentiment improving, the outlook for copper is turning increasingly positive.”
The metal has also been buoyed by growing market expectations of further monetary easing from the Fed after last week’s softer-than-expected US inflation data, providing additional support for industrial commodities.