September 1, 2025
Copper prices on the London Metal Exchange (LME) moved closer to the $10,000-per-tonne mark on Monday, continuing a four-week upward trend. The price increase is attributed to a weaker US dollar and steady demand from China. LME copper prices rose by as much as 0.3% during the day, reaching $9,928 per tonne, and recorded a 3% increase for August.
On the COMEX, copper futures remained stable, with the most active contract priced at $4.598 per pound, equivalent to $10,137 per tonne.
The US dollar's decline is linked to market expectations of a rate cut at the upcoming Federal Reserve meeting, making dollar-priced commodities more affordable for international buyers. While China's demand for copper remains robust, it is showing signs of slowing. According to Zijin Mining Group, China's apparent copper consumption increased by approximately 10% in the first half of 2025.
Goldman Sachs analysts have noted that while expectations of US rate cuts and supportive regulations have provided stability, the sector could face challenges due to looser physical markets and ongoing weaknesses in Chinese economic data. The bank has maintained its year-end LME copper forecast at $9,700 per tonne and continues to hold a bearish outlook on aluminum.
"Broad activity data in China appears to be weakening, and apparent consumption growth of copper and aluminum has slowed in recent months, in line with our expectations," Goldman Sachs stated in a note dated August 29.
