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Copper prices are on track for their strongest monthly performance in a year, with the metal rising nearly 5 percent in September to approach a 16-month high.
Supply disruptions, including Freeport-McMoRan’s force majeure at Indonesia’s Grasberg mine, helped buoy prices despite weak Chinese factory data showing a sixth straight month of contraction, according to an analysis conducted by the Access Bank group.
Analysts warned that if outages persist while demand holds steady, the market could face its largest annual copper deficit since 2004.
Expectations for long-term consumption growth—driven by the global energy transition and artificial intelligence-related demand—are also providing price support.
Read more: Copper prices slip from three-month high, as Kwacha halts four-day winning streak against dollar
Still, copper had been volatile this year, whipsawed by trade-policy shifts and frequent supply disturbances.
Other base metals such as aluminum, zinc, nickel, lead, and tin posted slight daily declines.
In currency markets, the US dollar softened on Tuesday as traders weighed the risk of a possible government shutdown that could delay the release of key economic data, including Friday’s nonfarm payrolls report.
The uncertainty leaves the Federal Reserve without crucial labour-market guidance.
Markets are currently pricing in around 42 basis points of Fed easing by December and 104 basis points by the end of 2026, slightly lower than mid-September expectations, keeping the dollar under near-term pressure.
Locally, the Zambian Kwacha weakened against the greenback at the start of the week.
Bloomberg data showed the Kwacha slipping 0.65 percent to close below the 23.900 mark after failing to hold an intraday breakout.
Analysts note that while a pickup in foreign-currency conversions could occur this week, it is unlikely to generate lasting support, serving only to moderate the pace of depreciation.
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