Copper has experienced notable movement recently, climbing above $4.3 per pound for the first time in two months. This upward shift came in tandem with a significant 50 basis point rate cut by the Federal Reserve on September 19, which boosted sentiment for riskier assets and injected some optimism into the global economy. Amid ongoing concerns about softer economic indicators—such as lower manufacturing activity in the U.S. and disappointing data from China—the improved monetary policy outlook has contributed to this price rally.
Just last week, on September 20, copper closed at $4.34, marking a bounce-back from its earlier struggles when it dipped close to $4.07 earlier this month. In recent weeks, copper had hovered around the mid-$4 range, with a high of $4.25 just before this latest leap. The backdrop of the resource’s rise is characterized by not just U.S monetary policy, but also supply constraints, particularly energy shortages in Zambia that are impacting one of the world’s leading copper producers.
Over the past year, copper’s price trajectory highlights how the commodity has struggled since hitting a peak well over $5 in May. The climb to today’s price, especially from the past few weeks where it remained around the low $4 mark, underscores both the sensitivity to economic data and the critical role of supply dynamics in shaping market movements. Currently, with ongoing uncertainty in production and a hopeful outlook for demand if China steps up stimulus, the market remains attentive to both economic trends and supply constraints.
