Copper prices have recently surged to a two-month high, reaching $9,525 per ton on September 20, 2024. This increase was largely driven by the Federal Reserve's announcement of a half-point rate cut on September 18, which bolstered expectations for a soft landing for the U.S. economy. Additionally, China's copper premiums have risen to their highest levels since early 2024, indicating strong demand from the world's largest consumer of the metal. Inventory levels on the Shanghai Futures Exchange have also decreased, further supporting the price increase. Analyst Xu Wanqiu from Cofco Futures Co. highlighted that improving macroeconomic conditions are contributing to this positive trend in copper prices. In contrast, base metals had experienced declines in August due to weak demand from China, but the recent developments have shifted market sentiment. The uncertainty surrounding the upcoming U.S. presidential election is also impacting risk appetite among investors. Meanwhile, previous reports indicated that copper prices had faced challenges due to mixed economic data from China and a cooling speculative frenzy. Earlier in the month, copper prices had dipped to a five-week low amidst concerns over demand and a stronger dollar. However, the recent Fed rate cut and positive job data have shifted expectations, leading to renewed interest in copper and other base metals. As of now, copper prices are showing resilience, reflecting a complex interplay of factors including monetary policy, economic indicators, and global demand dynamics. The market will continue to watch for further economic data releases, particularly from China, to gauge future price movements. Overall, the copper market is navigating through a landscape of both challenges and opportunities, with current trends suggesting a potential recovery fueled by supportive economic policies and demand from key markets like China.