Copper Maintains Upward Momentum with Steady Price Increases

Copper prices held firm near $5.19 per pound in early trading on July 3, 2025, according to official market data and technical charts.

The market maintained this level after a session marked by steady, incremental gains, reflecting persistent supply constraints and robust demand from industrial consumers.

The London Metal Exchange (LME) reported a cash settlement price of $10,045 per ton on July 2, with inventories at 93,250 tons, underscoring the ongoing tightness in physical supply.

Traders observed that both LME and US-based contracts showed copper trading just below recent highs. The Shanghai Futures Exchange (SHFE) closed with copper at 80,390 yuan per ton, while LME inventories remained near multi-year lows.

These figures confirm that physical supply remains tight, with backwardation in the futures curve signaling that buyers continue to pay a premium for immediate delivery.

Market participants attributed the firm price action to several factors. First, global warehouse stocks have not recovered from recent drawdowns, with LME copper stocks down sharply year-to-date.

Second, ongoing uncertainty over tariffs and trade policy, especially between the US and China, has kept buyers active in the spot market.

Third, demand from the energy transition and infrastructure sectors continues to support consumption, even as some industrial activity shows signs of slowing.

Technical analysis of the daily chart reveals a market in a clear uptrend. The price remains above key moving averages, including the 50-day and 200-day simple moving averages, which both slope upward.

The Relative Strength Index (RSI) stands at 69.4, indicating strong momentum but also suggesting that the market approaches overbought territory.

The Moving Average Convergence Divergence (MACD) indicator remains positive, with the MACD line above the signal line, confirming bullish momentum.

Bollinger Bands show that copper trades near the upper band, reflecting elevated volatility and the potential for short-term pullbacks. Support levels appear at $5.07 and $4.95 per pound, while resistance remains at $5.22 per pound.

Volume analysis confirms that recent price moves have occurred on solid trading activity, lending credibility to the current trend. Over the past 24 hours, copper prices fluctuated within a narrow range, with no major breakouts or breakdowns.

Market participants reported steady volumes and continued interest from both industrial users and financial investors. ETF flows into copper-related funds remained positive, reflecting ongoing investor confidence in the sector.

Macroeconomic factors also played a role. The US dollar weakened further, making copper more attractive to buyers using other currencies. At the same time, expectations for stable interest rates and ongoing infrastructure spending in major economies provided a supportive backdrop.

Copper’s price stability reflects a market shaped by tight supply, strong technical support, and persistent demand. The technical indicators suggest that while the uptrend remains intact, caution is warranted as the market approaches overbought conditions.

Market participants will continue to watch inventory data, policy developments, and trading volumes for signs of a shift in momentum.

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