New Delhi, October 2024: Copper prices continued their upward trend, rising by ₹3.10 to ₹820.25 per kilogram in the futures market, driven by strong spot demand and speculative trading. On the Multi Commodity Exchange (MCX), October copper contracts gained 0.38% during recent trading sessions, with a business turnover of 7,867 lots.
This price rally is influenced by several factors. The ongoing economic stimulus from China, which injected 3.95 trillion yuan ($560 billion) into its economy in September, has revitalized demand for copper in the world’s largest consumer market. The stimulus package has enhanced the physical market’s activity, leading to higher premiums for copper cathodes in Shanghai. This boost has been instrumental in stabilizing global copper prices despite slower demand from the West.
Additionally, market analysts forecast that the Federal Reserve’s anticipated interest rate cuts could further support copper prices as it enhances liquidity and fuels investment in industrial metals. Seasonal factors and the speculative positioning of traders, who are betting on the price surge, also contribute to the upward trend expected in the fourth quarter of 2024.
On a global scale, analysts predict refined copper production to rise by 4.6%, primarily driven by China’s expanded smelting capacity. While the supply surge could potentially balance the market, the increasing demand for copper in green energy projects like electric vehicles (EVs), solar, and wind power continues to create a bullish outlook for copper prices.
Despite price volatility, the global energy transition is providing significant support to copper demand, with projections of an average growth rate of 2.7% in 2024. As the market adjusts to these dynamics, copper remains a critical commodity in both traditional and emerging industries.
