Base Metal Prices Climb as Copper Demand Outpaces Global Growth

Base metal prices gained momentum on Monday, with the London Metal Exchange (LME) three-month copper price rising by 0.7% to $9,627.50 per metric ton. Aluminum also experienced an increase, with the LME three-month aluminum price climbing 1.7% to $2,638.50 per ton. According to analysts at Commerzbank, Chinese copper demand during the first eight months of the year has been growing faster than the rest of the world, which has helped drive recent price movements.

Despite the rise in demand, the market remains oversupplied, Commerzbank noted. So far this year, copper supply has outpaced demand by 535,000 tonnes. In its autumn outlook released last month, the International Copper Study Group (ICSG) highlighted that the expansion of copper production may begin to slow, potentially tightening the market in the coming months. Commerzbank added that recent production figures could support this trend. Data from China's National Bureau of Statistics showed that copper production in September rose by just 0.4% year-on-year, which may indicate a moderation in supply growth.