Copper prices rise on hopes for China's economic support

Copper futures surged above $4.20 per pound on Monday, reaching a one-month high as base metals gained momentum following signals of substantial economic support from China.

Copper prices rise on hopes for China's economic support

The move boosted expectations for stronger manufacturing demand from the world’s top copper consumer. The Politburo announced that China will adopt a “moderately loose” monetary policy and a “more proactive” fiscal stance in 2025, signaling a significant shift away from the cautious approach of the past decade. This fueled speculation that increased economic support will sustain growth in China’s manufacturing sector, countering potential risks from the U.S.

Optimism for Chinese manufacturing boosted by strong PMIs

President-elect Trump’s sanctions. Optimism for Chinese manufacturing was already reflected in the expansionary PMIs for November, particularly the strong performance of domestically-focused firms measured by Caixin.