Copper Holds Below Peak as Traders Await Fed Policy Signals

Written by Sandra Leggero

Sandra Leggero has a background in financial markets, having spent more than 9 years in commodities trading for several European and Asian companies. She holds a degree in Economics from the University of Pavia and specializes in emerging markets.

, | Updated: December 10, 2025

Key Moments

Copper on the Shanghai Futures Exchange slipped 0.37% to 91,720 yuan a metric ton as of 0315 GMT, while London Metal Exchange three-month copper rose 0.67% to $11,564 a ton.
Investors scaled back positions ahead of the U.S. Federal Reserve’s policy decision, with expectations of a “hawkish cut” in December amid persistent inflation concerns and a resilient U.S. economy.
Shareholders of Canadian miner Teck Resources approved a merger with Anglo American, moving the transaction to regulatory review.

Fed Uncertainty Keeps Copper Below Record Highs

Copper traded just under its recent record levels on Wednesday as market participants positioned cautiously ahead of the conclusion of the U.S. Federal Reserve’s two-day policy meeting and potential hawkish guidance.

The most actively traded copper contract on the Shanghai Futures Exchange (SHFE) was down 0.37% at 91,720 yuan a metric ton as of 0315 GMT. In contrast, benchmark three-month copper on the London Metal Exchange (LME) advanced 0.67% to $11,564 a ton.

Copper’s prior rally lost momentum as the Fed decision approached, with the market anticipating a “hawkish cut” in December at a time when inflation worries persisted and the United States economy showed continued resilience. This backdrop reduced expectations for additional rate cuts next year.

Rate Expectations, Supply Concerns Support Volatility

Analysts at Chinese broker Jinrui noted in a report that caution over the path of future rate cuts has prompted investors to trim exposure, while projections of supply constraints outside the United States are helping keep prices both elevated and volatile.

Prices for copper have recently been driven to record territory by expectations that supplies will stay tight outside the U.S. market, compounded by disruptions at mining operations.

China Inflation Data and Policy Context

In China, consumer inflation accelerated to a 21-month high in November. However, deflation at the factory gate persisted, even as authorities intensified efforts to address overcapacity in certain key industries.

Corporate Developments: Teck Resources and Anglo American

In corporate news, shareholders of Canadian miner Teck Resources on Tuesday approved a merger with Anglo American, clearing the way for regulators to review the deal.