Copper prices rose in London on Thursday as Chinese traders returned from a week-long holiday, shifting from a muted market to a buying mood. Futures on the London Metal Exchange climbed as much as 1.2% early in the session before paring gains to around 0.2% by mid-afternoon. The rally is being driven by restocking demand in China and low global inventories, though analysts warn underlying demand may not recover quickly.
A strike at Antofagasta Plc's Centinela mine in Chile also provided support, with two unions beginning walkouts that will affect production within two weeks. Traders are watching the U.S. Federal Reserve's interest rate path, pricing in a 20% chance of further tightening in October and an 80% chance in December. Copper consolidated after reaching a record high last month on concerns about U.S. tariffs.
The metal gained 0.3% to $14,512.50 a ton on the LME. Other base metals were mostly weaker, with iron ore futures in Singapore down 0.3% to $91.15 a ton.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing