Copper futures climbed above $4.07 per pound on Wednesday, recovering some of the previous session's losses as global risk sentiment improved, supported by gains in US stocks and pullbacks in the dollar and Treasury yields.
Copper rises as risk sentiment improves
Concerns over US President-elect Donald Trump’s latest tariff threats against China, Mexico, and Canada also eased as traders awaited more details on the proposed measures. Copper prices received additional support from expectations of stronger demand from China’s appliance and automotive sectors, although overseas demand continued to show signs of weakness.
Challenges at the BHP-led Escondida copper mine in Chile
On the supply side, Citi highlighted challenges at the BHP-led Escondida copper mine in Chile, noting declining ore grades and rising costs that are putting pressure on production.
