COMEX copper futures higher for second straight day

On Thursday (12 September), the Chicago Mercantile Exchange (COMEX) copper futures market continued to show strong upward momentum on Thursday, 

which is the second consecutive day of price increases. This round of upward movement is mainly by the weakening of the U.S. dollar exchange rate, 

signs of improvement in Chinese demand and the prospect of interest rate cuts by the Federal Reserve common support.

Translated with DeepL.com (free version)

Copper futures prices generally rose, with gains ranging from 5 cents to 5.35 cents, according to market closing data. The most active December 2024 copper

 futures contract closed at $4.1955/lb, up 5.35 cents, or 1.29 per cent, from the previous session, which was also the highest closing price since 30 August.

In the course of trading, the December copper futures contract price fluctuation range is relatively wide, the lowest touched $ 4.1565 / lb, while the highest 

climbed to $ 4.2375 / lb, showing that the market trading is active and price volatility.

In terms of volume, the turnover of the benchmark COMEX copper futures contract reached 56,430 lots on Thursday, up from 54,606 lots on the previous

 trading day, showing that investors' attention and participation in the copper market have increased. Meanwhile, the short volume fell slightly,

from 119,805 lots in the previous trading day to 118,298 lots, which may mean that some short positions have been closed or transferred.

Market analysts point out that the weakening of the US dollar exchange rate is one of the key factors pushing up copper prices. As the US dollar is 

the main currency of international commodities, the fall in the US dollar exchange rate has made US dollar-denominated commodities such as copper 

cheaper relative to holders of other currencies, thus attracting more buying.

In addition, as one of the world's largest copper consumers, China's demand situation has an important impact on global copper prices. Recently, 

China's demand has shown signs of improvement, including accelerated infrastructure construction and a rebound in the property market, all of which 

have boosted the market's expectations for future copper demand. Such expectations have further fuelled the rise in copper prices.

At the same time, the prospect of the Federal Reserve interest rate cuts also support copper prices. The market is widely expected that the Federal Reserve

 will continue to take loose monetary policy to stimulate economic growth in the coming period, which will reduce the cost of funds and improve market

 liquidity, thereby constituting a positive for the commodity market, including copper.