rise on the London exchange

Three-month copper futures on the London Metal Exchange rose 0.8% to $9,026 per ton. This represents a reversal from last month's price drop below $9,000 per ton.

This reflects market excitement about the possibility that the Federal Reserve may shift its focus from controlling inflation to boosting economic growth. Such expectations are fueled by weaker-than-expected US producer price data, leading investors to anticipate that cooling inflation could prompt interest rate cuts.

The US dollar index, which fell to its lowest level in a week, also supported copper prices by making the dollar-denominated metal more accessible to buyers using other currencies.

However, the copper's gains were limited by ongoing concerns about the Chinese economy. Recent data showing that bank lending in China in July was the lowest in nearly 15 years has fueled fears of a prolonged economic slowdown. This could negatively impact industrial activity and demand for metals.

Notably, a strike by a powerful labor union at BHP's Escondida mine in Chile further boosted copper prices. These striking workers aimed to secure a larger share of the profits from the world's largest copper mine.

This metal, used in electricity and construction, is on track for a weekly gain of 3%, the first in six weeks, as the strike at Escondida raises concerns about supply disruptions.

Escondida is the world's largest copper mine, accounting for nearly 5% of global supply in 2023. A wage agreement at the mine could be reached if union members approve it.

On the demand side, the outlook for China, the leading metal consumer, remains challenging, creating downside risks for copper, said Ewa Manthey, a commodities analyst at ING.

"The prolonged crisis in the real estate market shows no sign of bottoming out, and we believe this will continue to put pressure on copper prices," Manthey said, referring to the construction sector, which is a major consumer of copper.

"And it's not just weak demand in China putting pressure on copper prices; manufacturing appears weak globally, suggesting a slow recovery in demand for copper and other industrial metals," she added.

Source: https://kinhtedothi.vn/gia-kim-loai-dong-ngay-19-8-tang-บน-san-luan-don.html