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2025-10-16 17:54:47
[Copper Prices Remain High, Hidden Signs Behind Three Factors] ⑴ Copper prices came under pressure on Thursday, with London copper futures falling 0.7% to $10,566 per ton, a significant decline from the 16-month high of $11,000 reached last week. ⑵ The price fluctuations were primarily driven by market concerns stemming from Trump's tariff rhetoric and the two-week US federal government shutdown, which the US Treasury estimates is costing the economy up to $15 billion per week. ⑶ Concerns are emerging on the demand side: Metals traders revealed that manufacturers are reducing their long copper positions. ⑷ Goldman Sachs analysts noted that the copper market remains oversupplied, and a price break above $11,000 would dampen buyers' appetite. ⑸ Long-term optimistic expectations support the current high price: The market is betting that the outlook through 2026, including Federal Reserve rate cuts, a weaker dollar, and increased capital spending on artificial intelligence, will drive copper demand for data centers and power grid infrastructure. ⑹ Structural tensions are emerging in the aluminum market. The premium of spot prices to three-month futures exceeded $21 this week, reaching a new high since February, reflecting the possibility of tight inventories in London Metal Exchange warehouses.
