Copper pulls back after strong rally, China stimulus boost

Copper futures fell to around $4.26 per pound on Monday, giving back some of last week's gains, as the dollar strengthened following stronger-than-expected US jobs data.

Copper pulls back after strong rally, China stimulus boost

This data dampened expectations for further interest rate cuts by the Federal Reserve, and a stronger dollar makes commodities like copper more expensive for buyers using other currencies, potentially reducing demand. Despite the pullback, copper had surged nearly 6% last week, marking its best weekly performance since late September. This rally was driven by optimism over potential stimulus measures in China, the world’s largest copper consumer, as the country faces slowing economic growth and persistent deflationary pressures.

Copper prices boosted by supply concerns and demand

Concerns about supply disruptions, particularly from aging copper mines and reduced output from key mining regions, continue to support the metal’s price outlook. Investors are also closely monitoring global economic conditions, which could further influence demand for copper, particularly in green energy projects, infrastructure, and manufacturing.