Live Updates > Live Update Details
2025-09-17 20:36:05
Copper Prices Under Pressure Await the Federal Reserve's Decision (1) Copper prices fell to a one-week low on Wednesday, primarily due to traders cutting positions ahead of the Federal Reserve's (Fed) interest rate decision. Meanwhile, recent copper price increases in China, the largest metals consumer, have dampened demand. Three-month copper on the London Metal Exchange (LME) fell 1.6% to $9,963 per ton on Wednesday Shanghai time, but remained above its 21-day moving average of $9,910, which supports prices. Just on Monday, the metal hit a 15-month high of $10,192.50. (2) Analysts noted that the copper market's lackluster performance this week, with a lack of systematic buying and even a reversal of the mean sell signal, exacerbated overall market weakness. (3) Market participants are closely watching the Fed's statements, not only regarding the expected rate cut, but more importantly, regarding future policy direction. Given the dollar's roughly 10% decline this year and weak labor market data, traders are looking for signals as to whether this rate cut will be the first of a series. ⑷ In addition to copper, LME aluminum prices fell 1.3% on Wednesday to $2,683 per ton. On Tuesday, aluminum prices hit a six-month high of $2,720. On that day, the premium of spot aluminum to three-month aluminum reached $16, the highest since March. This shows that in the current settlement week, the LME aluminum market is in short supply and short position holders have to reduce or extend their contracts. The "tomorrow delivery, the day after tomorrow delivery" spread of aluminum fell to zero on Wednesday, compared with $13 on Tuesday. Data shows that among the total LME September aluminum futures positions, one long position holds more than 40% of the positions.
