Copper futures eased below $3.6 per pound from a 2-week high, on expectations the Federal Reserve will keep tightening aggressively to curb sky-high inflation hurting economic growth and demand for metals. The US inflation rate continued to pull back from a 40-year peak in August, but less than expected; and the core inflation rate, which strips out food and energy prices, unexpectedly reaccelerated from July. The red metal has been rising amidst signs of physical tightness, hopes for more policy support in top metals consumer China and various supply-side risks. Workers at BHP’s Escondida in Chile, the world’s largest copper miner, are currently negotiating with local regulators after threatening an all-out strike last week due to safety concerns.
Historically, Copper reached an all time high of 5.02 in March of 2022. Copper - data, forecasts, historical chart - was last updated on September of 2022.
Copper is expected to trade at 3.50 USd/LB by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 3.28 in 12 months time.