According to Odaily, Zhang Weixin, an analyst at CITIC Futures, has outlined potential impacts on copper prices based on the Federal Reserve's actions in September. If the Federal Reserve opts for a 25 basis points (BP) rate cut, it would be seen as a precautionary measure, which could positively influence copper prices. Conversely, a 50 BP rate cut might trigger a sell-off in risk assets. Should the Federal Reserve decide against a rate cut, the unmet expectations could lead to selling pressure, and the continued high interest rates would increase economic uncertainty, negatively affecting copper prices.
Zhang further elaborated that the future trend for copper prices is expected to be weak and volatile. The cautious outlook on copper prices is primarily due to a pessimistic view of the global economy. The growth rates in two major areas of copper demandânew energy vehicles and power investmentâare facing a slowdown. Additionally, copper supply has experienced significant disruptions this year. If these supply issues improve next year, the supply-demand relationship could weaken further.
