expected to peak in Q4/2024

Copper was trading at $9,548 a tonne ($4.33 a pound), up 12%.

Analysts said the upbeat forecast was driven by a combination of favorable macroeconomic conditions and tighter market fundamentals.

Copper traded at $9,548 a tonne ($4.33 a pound), up 12% from the start of the year, but down from a peak of more than $11,000 a tonne in May.

Key factors contributing to the rise include expectations of a rate cut by the US Federal Reserve and a significant stimulus package from China.

Announced in September 2024, China's stimulus package will pump 3.95 trillion yuan ($560 billion) into the economy, equivalent to more than 3% of the country's GDP.

China saw a modest recovery in its physical market in August 2024, with premiums for Shanghai A-grade copper rising gradually. This recovery was largely due to improved import conditions following a decline in prices on the London Metal Exchange (LME).

However, price volatility continues to pose challenges, according to Fastmarkets. In addition to macroeconomic factors, seasonal trends and speculative positioning are expected to drive copper prices through Q4 2024.

The fourth quarter is traditionally the strongest period for copper, and smelter production cuts coupled with rising demand from China’s physical market are expected to tighten supply. Fastmarkets’ long-term outlook remains bullish, particularly given the rising demand for copper amid the global energy transition.

By 2025, grade A copper prices in Rotterdam are expected to increase by 25% due to tighter supplies and recovering demand in Europe, the company said.

However, despite growing demand from green energy projects, the overall European copper market remains weak, with Germany facing sluggish demand from the manufacturing, automotive and construction sectors.

Source: https://kinhtedothi.vn/gia-kim-loai-dong-ngay-14-10-du-bao-se-dat-muc-cao-nhat-vao-quy-iv-2024.html