Copper Price Gains Analyst Attention Heading Into October. Here's Why

Source Beincrypto

Copper is heading for its steepest weekly drop since May, with London Metal Exchange (LME) futures down over 2%. Bloomberg reported that costlier energy and a stronger dollar have clouded the demand outlook.

The slide began in the same week Deutsche Bank forecast a rally of about 50% for the metal. 

What Pulled the Copper Prices Down This Week?

Oil gains tied to the Iran war have weighed on copper in recent sessions, according to Bloomberg. Three-month LME copper closed at $14,243.50 a ton on Thursday, down 1.16% on the day, according to LME data.

Data from China, the world’s largest copper consumer, is another headwind. Industrial profits there rose 4.2% year on year in August, slowing from 11% growth in July.

That was the weakest reading since profits fell last November. Copper dropped 1% to $14,478 a ton on the LME on Monday morning, with zinc and aluminum also lower.

A stronger US dollar added to the pressure. The US Dollar Index (DXY), which measures the greenback against six major currencies, has gained 0.77% so far this week. It stood near 101.97 on Friday.

Follow us on X to get the latest news as it happens

Can a Supply Squeeze Outlast the Macro Pressure?

While oil, the dollar, and Chinese data have pressured demand this week, Deutsche Bank’s bullish call rests on supply. The bank sees copper reaching $22,050 a ton in the second quarter of 2027.

Analyst Daniel Ghali referred to the current environment as a “historic scramble for metal.” Deutsche Bank estimates that China holds 2.05 million tons of copper in strategic reserves. 

Threats of US copper tariffs have also pulled metal into American warehouses. The bank expects 1.3 million tons to sit there by year-end.

Together, the bank calculates, those holdings could tie up 71% of global above-ground inventories by the end of 2026. BMO Capital Markets has also lifted its outlook, raising its 2030 copper forecast to about $18,000 a ton.

Thursday’s close left copper nearly $7,800 below Deutsche Bank’s $22,050 target, which implies about 55% upside. Chinese buyers return once the National Day holiday ends on October 7.

Subscribe to our YouTube channel to watch leaders and journalists provide expert insights

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
WTI Price Forecast: Dips to $91.50 as Middle East jitters limit lossesWest Texas Intermediate (WTI) – the benchmark US Crude Oil price – attracts some sellers during the Asian session on Friday, snapping a two-day winning streak and stalling the previous day's recovery from the vicinity of a nearly four-week low.
Author  FXStreet
9 hours ago
West Texas Intermediate (WTI) – the benchmark US Crude Oil price – attracts some sellers during the Asian session on Friday, snapping a two-day winning streak and stalling the previous day's recovery from the vicinity of a nearly four-week low.
placeholder
Silver price forecast: XAG/USD rises to near $61.40 as US yields retreat, NFP eyedSilver price (XAG/USD) is up 0.55% to near $61.38 during the late Asian trading session on Friday. The white metal edges up as rally in United States (US) Treasury Yields has hit a pause.
Author  FXStreet
9 hours ago
Silver price (XAG/USD) is up 0.55% to near $61.38 during the late Asian trading session on Friday. The white metal edges up as rally in United States (US) Treasury Yields has hit a pause.
placeholder
United States Dollar Index sits near March 2025 highs, above 102.00 ahead of US NFPThe US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, attracts buyers for the fifth straight day and climbs back above the 102.00 mark during the Asian session on Friday.
Author  FXStreet
13 hours ago
The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, attracts buyers for the fifth straight day and climbs back above the 102.00 mark during the Asian session on Friday.
placeholder
US September Nonfarm Payrolls Preview: Job Growth May Cool, How Will US Stocks, Dollar and Gold React?On Friday, October 2 (EDT), the U.S. will release its September nonfarm payrolls report, with markets focusing on whether job growth can sustain August's rebound and whether the data will
Author  TradingKey
Yesterday 06: 21
On Friday, October 2 (EDT), the U.S. will release its September nonfarm payrolls report, with markets focusing on whether job growth can sustain August's rebound and whether the data will
placeholder
Gold falls to near $4,150 as higher Treasury yields, oil prices outweigh softer PCE inflationGold price (XAU/USD) tumbles to near $4,150 during the early Asian session on Thursday, pressured by elevated US Treasury bond yields. Traders await the US September employment data for fresh impetus, which will be released later on Friday. 
Author  FXStreet
Yesterday 01: 26
Gold price (XAU/USD) tumbles to near $4,150 during the early Asian session on Thursday, pressured by elevated US Treasury bond yields. Traders await the US September employment data for fresh impetus, which will be released later on Friday. 
goTop
quote