FX.co ★ Copper Holds Gains as Supply Risks Persist

Copper futures hovered near $6.57 per pound on Friday, consolidating recent gains as persistent supply-side constraints continued to underpin prices. Analysts pointed to the Democratic Republic of Congo’s recent export ban, reduced output from key producers Chile and Peru, and disruptions associated with El Niño as key drivers of the tightness. Chile’s copper production dropped 9.4% year-on-year in July, pressured by severe weather and mine maintenance, while China’s refined copper output fell 3% in June to 1.1 million tons.

At the same time, uncertainty over tariffs has been prompting increased shipments into the United States, swelling Comex stockpiles to record levels and further tightening availability in other regions. On the demand side, renewed tensions between the US and Iran have raised concerns that persistently high energy prices could curb global economic activity and, in turn, dampen metals demand.