Shanghai copper prices surged to a record high on Monday, supported by supply constraints and positive demand outlook, while London copper prices were tempered by apprehension surrounding the timing of U.S. interest rate cuts.
The most-traded May copper contract on the Shanghai Futures Exchange reached a peak of 75,510 yuan per ton, marking a 2.6% increase in the morning session. In comparison, three-month copper on the London Metal Exchange rose by 0.2% to $9,343.50 per metric ton. The uptrend in copper prices was influenced by expectations of rate cuts by the U.S. Federal Reserve and a weaker dollar, with recent strong manufacturing data from China and the U.S. boosting demand prospects for industrial metals.
Additionally, potential output reductions by Chinese smelters due to raw material shortages have further supported copper prices. However, concerns regarding the timing of interest rate cuts resurfaced following higher-than-expected U.S. jobs data, leading to a firm dollar and limiting gains in the greenback-denominated commodity.