The metal hit a two-week high as concentrate and scrap shortages tightened conditions in China, while traders watched for possible US tariffs and softer Chinese factory data.
Copper futures climbed toward $6.5 per pound on Monday, reaching a two-week high as supply constraints continued to tighten the market. Analysts pointed to shortages of copper concentrate and scrap copper in top consumer China, which pushed treatment charges and market spreads higher. Traders also stayed cautious over the prospect of new US tariffs on the metal, a risk that has already encouraged shipments to be diverted into the US. Even with those pressures, copper continued to benefit from a constructive long-term demand story tied to the global shift toward clean energy and the rapid expansion of artificial intelligence data centers. The demand backdrop was tempered by private data showing China’s manufacturing activity slowed to a four-month low in July, with output and new orders rising more slowly, while the Politburo said last week it would keep relying on existing policy measures rather than broad-based stimulus.