Copper Prices Reach Two-Week High Amid Global Manufacturing Resurgence

Copper Prices Reach Two-Week High Amid Global Manufacturing Resurgence

2025-02-05 economy

New York City, Tuesday, 4 February 2025.
Copper futures hit over $4.3 per pound in February 2025, driven by a manufacturing recovery in major economies, potentially boosting global economic growth.

Manufacturing Sector Revival

The U.S. manufacturing sector has shown remarkable improvement, with the ISM Manufacturing PMI rising to 50.9 in January 2025 from 49.2 in December 2024 [6]. This marks the first expansion in factory activity after 26 consecutive months of contraction [6]. The surge in copper prices, which increased 9.10% since the beginning of 2025 [1], reflects this broader industrial recovery and growing confidence in global manufacturing.

Market Dynamics and Trade Relations

The price surge to $4.3 per pound [1] comes amid improving trade relations between major economies. The market has responded positively to decreased trade tensions between China and the United States [1]. Additionally, Beijing’s signals of upcoming fiscal stimulus packages, coupled with existing monetary stimulus measures, have raised expectations for stronger demand in factory goods [1].

Supply and Demand Outlook

Copper, being essential for construction, wiring, and renewable energy projects [5], is experiencing increased demand due to global infrastructure development and urbanization trends [5]. Market analysts project copper to trade at 4.58 USD/LB in twelve months [1], indicating sustained confidence in industrial metal demand. The metal’s performance is particularly significant as copper is the third most widely used metal globally [1].

Economic Implications

The rising copper prices and manufacturing recovery signal a potential broader economic upswing. New orders in the U.S. manufacturing sector increased at a faster pace (55.1 vs 52.1) [6], while production rebounded (52.5 vs 49.9) [6]. These indicators, combined with improving employment figures in the sector (50.3 vs 45.4) [6], suggest a strengthening economic foundation for 2025.

Sources


Copper prices Manufacturing recovery