Copper Price Rises Amid Positive Chinese Economic Data and US Election Speculation
Copper prices increased for a third consecutive day, driven by strong economic data from China and expectations that Beijing will announce further support measures.
The industrial metal has gained over 2% since Thursday’s close, following reports showing that China’s services sector expanded last month at its fastest pace since July.
This came after positive factory activity data from both official and private sources. These indicators suggest that China’s recent stimulus efforts might be starting to show results.
The Chinese government is anticipated to unveil additional economic support measures during the National People’s Congress Standing Committee meeting this week, with senior officials hinting at a major announcement, according to Bloomberg Economics.
Copper and other metals had dropped in the previous month as initial optimism over China’s economic recovery faded. Market attention is now shifting to the upcoming US elections, with results expected to come through in Asia on Wednesday. According to Citigroup Inc., copper has risen on election day in nine of the last ten cycles.
The metal could surge to $10,000 per ton over the next week, buoyed by potential Chinese and US monetary easing, a risk-on market stance if Donald Trump wins, or reduced tariff concerns if Kamala Harris prevails.
As of 11:27 a.m. in Shanghai, copper rose 0.4% to $9,730.50 per ton on the London Metal Exchange. Aluminum climbed 0.5% to $2,633, following a report showing China’s aluminum inventories hit their lowest levels since February. Iron ore futures also advanced by 1.7% to $105.70 per ton on the Singapore exchange.
