Copper Nears Annual High, Driven by Trade Optimism and Falling Inventories
By Ion Jauregui – ActivTrades Analyst
The copper market is once again in the spotlight. The metal is currently trading at around USD 9,756 per tonne on COMEX futures at the London Metal Exchange (LME), approaching its annual high reached at the end of March, near USD 10,000. This rally is supported by a combination of macroeconomic drivers and market-specific factors.
China–U.S. Dialogue Boosts Demand Outlook
One of the key catalysts behind this upward move has been the recent diplomatic thaw between China and the United States, which has improved the global trade climate. Trade negotiations held in London have renewed optimism about global economic growth, which naturally strengthens the projected demand for industrial metals like copper—widely used in construction, energy, and technology sectors.
LME Inventories at Lows Add Upward Pressure
Adding to this context is a significant decline in inventories recorded at the LME. This drawdown reflects both an increase in physical consumption and speculative positioning amid potential new tariff policies that could follow the current trade truce. This relative scarcity in physical supply has become another driver of price gains.
Technical Analysis of Copper (USD/lb)
As of early trading hours, copper is quoted at approximately USD 476.5 per pound, according to ActivTrades data. The asset has shown strong upward momentum from July 2023 through May 2024, with a brief correction down to USD 399.70, a key technical support level for the ongoing rally that began in mid-April. The Point of Control (POC) for volume is located around USD 467, holding above an intermediate support level at USD 449.13, reinforcing the short-term bullish structure.
As for resistance levels, USD 505.32 stands out as the main ceiling to overcome. Currently, the price is fluctuating within a technical range between USD 494.22 and USD 442.61, suggesting a consolidation phase ahead of a potential breakout.
Conclusion
Copper remains one of the most dynamic industrial metals in today’s macroeconomic landscape. Renewed trade optimism between the world’s two largest economies, combined with a sharp drop in LME inventories, has created a solid set of fundamentals justifying the approach toward annual highs. Technically, the bullish structure remains intact as long as key support levels hold, and a sustained close above USD 494/lb could pave the way for fresh short-term highs. In this context, copper not only reflects the pulse of global industry but also embodies the economic growth expectations in a time of geopolitical and energy transition.
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.
By Ion Jauregui – ActivTrades Analyst
The copper market is once again in the spotlight. The metal is currently trading at around USD 9,756 per tonne on COMEX futures at the London Metal Exchange (LME), approaching its annual high reached at the end of March, near USD 10,000. This rally is supported by a combination of macroeconomic drivers and market-specific factors.
China–U.S. Dialogue Boosts Demand Outlook
One of the key catalysts behind this upward move has been the recent diplomatic thaw between China and the United States, which has improved the global trade climate. Trade negotiations held in London have renewed optimism about global economic growth, which naturally strengthens the projected demand for industrial metals like copper—widely used in construction, energy, and technology sectors.
LME Inventories at Lows Add Upward Pressure
Adding to this context is a significant decline in inventories recorded at the LME. This drawdown reflects both an increase in physical consumption and speculative positioning amid potential new tariff policies that could follow the current trade truce. This relative scarcity in physical supply has become another driver of price gains.
Technical Analysis of Copper (USD/lb)
As of early trading hours, copper is quoted at approximately USD 476.5 per pound, according to ActivTrades data. The asset has shown strong upward momentum from July 2023 through May 2024, with a brief correction down to USD 399.70, a key technical support level for the ongoing rally that began in mid-April. The Point of Control (POC) for volume is located around USD 467, holding above an intermediate support level at USD 449.13, reinforcing the short-term bullish structure.
As for resistance levels, USD 505.32 stands out as the main ceiling to overcome. Currently, the price is fluctuating within a technical range between USD 494.22 and USD 442.61, suggesting a consolidation phase ahead of a potential breakout.
Conclusion
Copper remains one of the most dynamic industrial metals in today’s macroeconomic landscape. Renewed trade optimism between the world’s two largest economies, combined with a sharp drop in LME inventories, has created a solid set of fundamentals justifying the approach toward annual highs. Technically, the bullish structure remains intact as long as key support levels hold, and a sustained close above USD 494/lb could pave the way for fresh short-term highs. In this context, copper not only reflects the pulse of global industry but also embodies the economic growth expectations in a time of geopolitical and energy transition.
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.