Copper wobbles as traders gather in Shanghai for major event

14th November 2023 By: Bloomberg

Copper pared Monday’s biggest advance in a month as some top executives from the global industry prepared to discuss the metal’s outlook at an event in Shanghai.

Asia Copper Week is getting into full swing in China’s commodities hub, against a mixed backdrop of strong demand growth in the country, continued pressure from tight monetary policy in the rest of the world, and uncertainty over the outlook for global supply.

Prices for the metal used in everything from home wiring to electric vehicles have softened since the start of 2023 as high interest rates and geopolitical tensions weigh on developed economies. In China, apparent demand has expanded by about 10% so far this year, according to Goldman Sachs Group Inc.

Copper edged down 0.1% to $8 155.50 a ton by 1:01 p.m. Shanghai time, after gaining 1.6% on Monday. It’s down 2.6% for the year.

Investors are also awaiting key US inflation data due later Tuesday that may steer the Federal Reserve’s next moves on interest rates. Fed Chair Jerome Powell said last week the central bank won’t hesitate to hike further if needed.