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Copper prices are heading for an 11th weekly gain in the past 12 weeks, trading around $14,460 a tonne as stronger Chinese demand and signs of tightening supply offset pressure from a more hawkish U.S. Federal Reserve.
According to Access Bank Group, the latest gains have been supported by tightening in the physical copper market, with the Yangshan premium rising to $121 a tonne, its highest level since November 2022.
“Chinese domestic copper production also edged lower in August, adding to indications of tighter supply in the world’s largest copper-consuming market,” the bank said.
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Copper is now up about 16% this year, with Access Bank attributing part of the increase to expectations of U.S. tariffs on refined copper and the resulting reshuffling of global inventories.
The sustained strength in copper prices comes despite a more challenging global economic environment, with tighter monetary policy creating headwinds for industrial commodities.
Access Bank said uncertainty surrounding U.S. copper tariffs remained, while tighter monetary conditions could limit further gains and leave base metals vulnerable to range-bound trading.
The bank said the market was balancing supply-side constraints against tighter monetary policy as investors assessed the outlook for global economic growth and industrial demand.
For Zambia, where copper remains the country’s major export commodity, sustained high international prices are important for export earnings and foreign-exchange inflows.
Copper price trends are also closely watched by Zambia’s mining sector, with producers and investors assessing the impact of global demand, monetary policy and trade measures on the outlook for the industry.
The market’s performance will remain a key factor for Zambia as global investors weigh physical supply constraints against risks to industrial demand and broader economic growth.
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