Copper rises to six-week high on supply concerns

Copper futures climbed above $4.6 per pound in mid-September, the highest in six weeks, as tightening global supply underpinned prices.

China reported around a 5% drop in September production, cutting about 500,000 tonnes of refined copper from the global market. The decline comes as inventories remain near multi-year lows, with London Metal Exchange stockpiles about 40% below their five-year average.

Supply pressures deepened after major producer Freeport-McMoRan confirmed its Grasberg mine in Indonesia will stay shut while rescue efforts continue for seven missing workers.

On the macro side, sentiment was further lifted by expectations of looser US monetary policy, with softer labor data and moderate inflation fueling bets on deeper Federal Reserve rate cuts.

Markets are currently pricing in roughly a 93% chance of a 25 basis point cut at the Fed’s September 17 meeting, with odds of a larger half-point move edging higher.