FX.co ★ Copper Falls for Second Consecutive Session

Copper futures fell below $6.40 per pound on Friday, posting a second consecutive session of declines as elevated prices curbed buying interest in China. The metal also came under pressure from faster US inflation, which strengthened expectations of a Federal Reserve interest rate hike later this year.

Despite the recent pullback, analysts still view overall Chinese copper demand as resilient in 2024, with robust consumption from clean energy and technology-related industries helping to offset ongoing weakness in the property and construction sectors.

Copper prices remain underpinned by a favorable long-term outlook, supported by investment in artificial intelligence-related data centers and infrastructure, power grid modernization, and the broader global energy transition.

On the supply side, China’s export restrictions on sulfuric acid, together with disruptions to sulfur production in the Middle East, are expected to tighten global supply conditions and offer additional structural support to copper prices.