Traders are anticipating Federal Reserve decisions on interest rates
Copper prices have increased by 16% since the beginning of 2026, holding near peak levels. The key drivers are supply disruptions and the logistical redirection of the metal to the US market. This was reported by Delo.ua citing Bloomberg, according to the portal PromPolitInform.
On the London Metal Exchange, copper was trading at $14,447.5 per tonne, despite a slight daily decline of 0.2%. Previous sessions showed price growth supported by investor sentiment regarding the artificial intelligence sector and signals of tighter supply.
Fed meeting anticipation
Traders are primarily focused on this week’s meeting of the Federal Reserve of the United States. While analysts expect interest rates to remain unchanged, the market is pricing in the possibility of a hike before the end of 2026.
Higher interest rates typically pressure metal prices by increasing borrowing costs and weakening industrial demand. Additionally, investors are assessing the potential impact of US tariff policy on the refined copper market.
Physical market shortages
The year-to-date 16% surge in copper prices is largely driven by restricted supply outside the US. Large volumes of the metal were diverted to the American market throughout the year in anticipation of potential import tariffs.
This shift has reduced stockpiles in other regions and increased strain on the physical market. Chinese brokerage Chaos Ternary Futures warns that US tariff policies on refined copper could exacerbate market volatility toward the year’s end, compounded by ongoing output disruptions at major global mines.
Photo: Depositphotos
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