Copper prices advanced on Friday, marking their fourth consecutive weekly rise, as stronger economic signals from the United States and tentative signs of recovery in China lifted demand expectations for the industrial metal.
On the London Metal Exchange, the benchmark three-month copper contract climbed as much as 0.8% to $9,898 per metric ton, approaching a one-month high. U.S. futures followed suit, with the most active COMEX contract rising 1% to $4.5880 per pound, or about $10,093 per ton.
U.S. Growth Momentum
Revised U.S. government data showed the economy expanding at a 3.3% annualized pace in the second quarter, stronger than the previously reported 3%. The revision was underpinned by a sharp 5.7% jump in business investment, coupled with resilient consumer spending and solid trade performance.
Chinese Manufacturing Stabilization
In China, industrial profits in July contracted at a slower pace compared with June, suggesting that recent government measures to rein in overcapacity and stabilize the manufacturing sector are starting to gain traction. Analysts say a moderation in profit declines could eventually bolster downstream demand for metals such as copper.
Analyst Views Diverge
Bloomberg Intelligence pointed to a potential near-term upswing in metals, noting that a weaker U.S. dollar case remains compelling. The firm added that recent volatility in the greenback against G20 currencies is unlikely to disrupt expectations for a cyclical dollar downturn in the second half of the year.
Goldman Sachs, however, struck a more cautious tone. The bank highlighted that while U.S. rate-cut expectations and supportive policies are providing stability, looser physical markets and uneven Chinese data may continue to pressure the sector. Goldman reiterated its year-end copper forecast of $9,700 per ton on the LME, while maintaining a bearish view on aluminum.
Canadian Juniors Step Up
In Canada, junior mining companies are moving to position themselves within this tightening copper narrative. Power Metallic Mines Inc. (TSXV: PNPN; OTCQB: PNPNF) has recently drawn attention with aggressive exploration at its Nisk-Lion project in Québec, a district-scale polymetallic asset prospective for copper, nickel and PGEs. The company also expanded its land package by more than 300% through a strategic acquisition earlier this summer, underscoring its ambitions to become a meaningful player in the critical minerals race.
Adding further weight to its board, Power Metallic last week appointed former federal minister Seamus O’Regan, whose political and business experience is expected to strengthen the company’s profile as it advances both domestic and international projects. The move highlights how Canadian juniors are not only drilling for high-grade discoveries but also assembling the leadership and strategic alliances needed to capitalize on the global rush for copper and related metals.
Takeaway
Copper’s steady advance reflects optimism around global economic resilience, particularly from the U.S., combined with cautious hopes that Beijing’s policy interventions are beginning to steady manufacturing. At the same time, exploration companies such as Power Metallic are looking to capture investor attention by expanding their projects and reinforcing leadership. Beyond macro headlines, the critical minerals race is increasingly being shaped on the ground in places like Québec.
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