Copper prices have increased as market participants focus on potential supply constraints in the coming year. According to ANZ, renewed disruptions and consistently strong demand are counteracting broader concerns surrounding the global economy. The bank observed that markets largely disregarded weaker-than-expected economic data from China, including a 1.3 per cent year-on-year increase in retail sales for November, a 4.8 per cent rise in industrial output, and a 2.6 per cent decrease in fixed asset investment over the January-November period.
Despite the mixed Chinese data, demand for copper remains robust. This demand is being supported by elevated Chinese imports, particularly those driven by the electric vehicle sector and energy infrastructure projects. These factors are helping to offset weaknesses observed in both manufacturing and property sectors. ANZ also noted that demand in the United States has been strong, bolstered by investments related to artificial intelligence and a reduction in trade tensions.
In contrast to copper’s performance, other base metals experienced a downturn. Nickel, zinc, and lead each saw declines of approximately 1 per cent. Meanwhile, iron ore futures remained relatively stable. Declining steel mill inventories in China were balanced out by weaker steel output and continued softness in the housing market.
The ANZ group provides a range of banking and financial products and services to retail, small business, corporate and institutional clients. Headquartered in Melbourne, ANZ operates in Australia, New Zealand, Asia and the Pacific.
