Copper futures steadied near $6.3 per pound on Tuesday after recent weakness, as stronger-than-expected trade data from China improved the copper demand outlook.
Chinese exports surged 19.4% year-on-year to a record $376.8 billion in May, comfortably exceeding forecasts. The increase was driven by robust demand for artificial intelligence equipment and renewable energy products, sectors that remain important sources of copper consumption growth.
Market sentiment also improved as geopolitical tensions eased. Iran and Israel agreed to halt attacks against each other, reducing concerns that another spike in oil prices could reignite inflation and force tighter monetary policy that would hurt global growth and metals demand.
Longer term, supply fundamentals continue to provide support. Jefferies expects copper prices to stay stronger for longer than previously anticipated, citing an average annual supply deficit of roughly 491,000 tons through 2030 and a slower-than-expected recovery at the Grasberg mine.
