Copper Prices Edge Higher Despite Rate Hike Pressure
During Friday's evening session, LME copper started at $14,332.5 per tonne, briefly fell to $14,277, then advanced to an intraday peak of $14,419 before closing at $14,378.5, a gain of 0.11%. Volume expanded to 17,000 contracts while open interest climbed by 1,102 to 266,000, reflecting fresh bullish bets. Meanwhile, the most active SHFE copper contract for October delivery opened at 108,760 yuan per tonne, touched a low of 108,720, rallied to 109,390, and settled at 109,290, up 0.16%.[S1]
The macro environment was shaped by August's US employment report, which showed a surge of 162,000 jobs, well above forecasts. This prompted traders to raise the odds of a September Federal Reserve rate increase to nearly 60%. The revived expectations of tighter monetary policy limited the potential for further copper price gains.[S1]
Supply Tightness and Cautious Demand
On the supply side, availability varied by region, with Shanghai experiencing continued tightening and the broader market staying in a constrained state. Demand-wise, elevated copper prices kept buyers focused on essential procurement and opportunistic restocking during price dips.[S1]
In summary, with rate hike expectations gaining momentum, copper prices are likely to trade with a soft tone today. The interplay of tight supply and cautious demand points to limited price movement in the near term.[S1]
