Copper Soaring on Monday

Copper prices are surging higher on Monday with the futures market now fast approaching a return to the record highs around the high 6.88s. The move comes amidst the broad rally in risk assets we’re seeing today driven by rising optimism around the US as Iran war after Ian submitted fresh terms of an end to the conflict. Trump is also expected to conduct talks with Gulf state leaders on the side of the UN meetings in New York this week as well as further talks with the Chinese premier. Energy prices are plunging today against this backdrop, creating further support for risk assets.

Bullish China Signals

Copper prices are also being supported today on better demand signals out of China. The Yangshan premium which is often used to gauge Chinese demand was seen jumping to its highest level since 2021 at the end of last week. With recent strength in Chinese industrial production data, the picture there is turning more bullish for copper. Finally, the broader backdrop of tight supply continues to underpin sentiment and with output in Chile still heavily below typical levels, higher prices look likely near-term, particularly if we see a breakthrough in US/Iran peace talks.

Technical Views

Copper

The rally in copper has seen price breaking back above the 6.5830 level and now 6.7190 also. With momentum studies bullish, focus is on a continued push higher with a fresh challenged of the record highs now approaching. While price remains above the bull trend line, the focus in on higher prices.