Copper rises on bullish Chile outlook as investors weigh Fed rate decision

SHANGHAI: Copper rose on Thursday as Chile’s state copper commission Cochilco lifted its price outlook to record levels, though gains were capped by caution in global markets and uncertainty over whether the US Federal Reserve will cut rates in December.

The most-traded copper contract on the Shanghai Futures Exchange was up 0.34% to 86,250 yuan ($12,121.60) a metric ton as of 0310 GMT.

The benchmark three-month copper on the London Metal Exchange also gained, up 0.28% to $10,783 a ton Copper’s gain came as Cochilco hiked its forecast of 2025 and 2026 copper prices to record highs, in line with market expectations amid production constraints in the world’s top copper mining nation.

The commission now sees the 2025 average copper price at $4.45 a pound, and forecasted $4.55 for 2026, both up from $4.30 previously.

The gain in copper futures contracts also comes as global markets stabilize following several days’ selloff in the run-up to Nvidia earnings and a pending December rate cut in the United States.

Nvidia’s earnings topped market expectations on Wednesday, helping to steady nerves.

All eyes are now on US jobs data later on Thursday, after minutes from the US Federal Reserve on Wednesday showed that the central bank officials remained divided, adding to growing doubt about another cut in December.

China, meanwhile, imported 279,944 tons of copper cathodes in October, down 22.10% year-on-year and 15.65% on a monthly basis, according to official customs data on Thursday.

Among other SHFE base metals, aluminium nudged 0.12% higher, nickel added 0.23%, while zinc, lead and tin were little changed.

Among other LME metals, aluminium added 0.61%, zinc rose 0.40%, lead ticked up 0.10%, nickel dropped 0.20% and tin was little changed.