September 3, 2025
Copper prices saw a decline on Wednesday after reaching their highest point since late March in London. Traders are weighing supply concerns against uncertain demand from China. On the London Metal Exchange, copper rose by 0.6% to $10,038 per tonne. The metal increased by 3% in August and is up about 14% this year.
COMEX futures remained stable, with the most-active contract dropping 0.14% to $4.638 per lb ($10,203/t) on Wednesday morning.
A weaker US dollar and potential interest rate cuts have supported prices recently. However, the market is focused on China, where signs of slowing industrial activity are causing demand concerns. China's official factory gauge for August indicated a rapid contraction, with analysts like Goldman Sachs predicting softer conditions in the year's second half.
Despite this, some experts remain optimistic. Higher import premiums, low inventories, and potential supply constraints are providing support. Several Chinese smelters are scheduled for maintenance in September, which could reduce supply and support price increases, according to Jia Zheng from Shanghai Soochow Jiuying Investment Management Co.
Copper has rebounded strongly after earlier disruptions due to global trade tensions. Material inflows to the US before tariffs have tightened supplies elsewhere, keeping US futures at a premium over LME prices. The market now faces a balance between supportive supply-side dynamics and uncertainty over China's economic slowdown affecting demand growth through 2025.
