FX.co ★ Copper Rallies on Supply-Squeeze Fears

Copper futures in the United States surged to approximately $5.4 per pound on Friday, marking their highest points in over four months. This increase is attributed to continuing supply disruptions and a significant withdrawal of metal from LME warehouses earlier in the week, which has sparked speculation about a potential supply squeeze. Concerns are rising over possible US levies on refined copper set for next year. Additionally, Ivanhoe Mines recently reduced its production forecast for the Kamoa-Kakula project in the Democratic Republic of Congo, while Glencore also revised its production target for 2026 downward. In contrast, Rio Tinto has increased its 2025 production forecast due to rapid advancements at its Oyu Tolgoi mine in Mongolia. Copper prices have further gained support from the anticipation that the US Federal Reserve will implement a 25 basis point rate cut next week, with expectations for 2-3 additional cuts in the coming year.