Copper holds losses on risk-off mood

Copper futures hovered near 4.42 dollars per pound on Wednesday after slipping 1 percent in the prior session, weighed down by a broad selloff in risk assets as U.S. technology shares came under heavy pressure.

The weakness in equities spilled over into commodities, amplifying investor caution ahead of the Federal Reserve’s annual Jackson Hole symposium. Markets are now looking to Fed Chair Jerome Powell’s remarks for signals on whether policymakers will validate expectations for a rate cut in September or push back in favor of a slower easing trajectory.

On the supply side, inventories have been rising as increased arrivals of imported copper reached major warehouses in Asia, particularly in China. These inflows have eased concerns over tightness that dominated earlier in the year when mine disruptions in Chile and Peru supported prices. Stock levels are now comfortably above seasonal averages, creating a buffer that has dampened any supply-driven rallies.

Demand, meanwhile, remains tepid. While there has been a mild recovery in industrial activity and grid investment in China, demand from the struggling property sector continues to lag, limiting the scale of the rebound. Outside China, European and U.S. consumption has shown little improvement, with manufacturers still cautious in placing new orders amid weaker global growth and lingering trade policy uncertainty.

Market participants note that without a decisive macroeconomic catalyst — such as stronger Chinese stimulus measures, a more dovish Fed pivot, or renewed supply disruptions at major mines — copper prices are likely to remain rangebound. The balance between ample stockpiles, relatively loose supply conditions, and lackluster end-use demand is keeping the market directionless in the near term.

Looking ahead, traders will closely monitor upcoming U.S. economic data releases, including durable goods orders and industrial production, as well as China’s August industrial output and infrastructure spending figures. Any signs of acceleration in manufacturing or green-energy investment could help put a floor under prices, while further weakness in property and construction would reinforce downside risks.