Copper Prices Hit Monthly Highs

Copper prices rose to their highest level in over a month on Monday, driven by favorable manufacturing data from China, a major consumer, alongside a weaker dollar.

The three-month copper contract on the London Metal Exchange experienced a slight dip of 0.2%, settling at $9,886 per metric tonne after peaking at $9,947, its highest since July 24.

So far this year, LME copper has gained 12%, bouncing back from a low of $8,105 in early April, which marked the lowest in over 16 months.

Investor interest surged following private sector reports indicating that China’s factory activity expanded at its fastest rate in August, with new orders increasing for the fifth consecutive month.

“Generally, the macroeconomic indicators and periodic trends in China are positive. This could bode well for demand,” stated Nitesh Shah, a product strategist at WisdomTree.

Shah further remarked that the positive momentum isn’t restricted just to products; “Chinese stocks are showing impressive gains,” he noted.

On the Shanghai Futures Exchange, the most actively traded copper contract saw a 0.7% increase, reaching 79,780 yuan ($11,153.52), marking the second consecutive session of gains.

However, concerns about U.S. tariffs have limited profit potential in the metals market, leading to a slowdown in factory activity across other regions in Asia.

Interestingly, the dollar index is poised to hit a five-week low on Monday, which might alter interest rate predictions as investors are keenly awaiting upcoming U.S. labor market data.

In terms of other metals, LME aluminum remained relatively stable at $2,616 per tonne. Tin slightly fell to $34,995, while lead grew by 0.7% to $2,004.50. Zinc increased by 0.4% to $2,831, and nickel saw a minor rise of 0.1% to $15,435 after a notable peak of $15,520 on July 25.