Copper futures were above $3.7 per pound, hovering near the...

Copper futures were above $3.7 per pound, hovering near the seven-week high of $3.72 from November 15th amid lower inventories and signs of robust demand in the near term. Inventories at the SHFE plunged by 45% from the corresponding week of the previous month on November 17th, triggering a fresh increase in the Yangshan copper premium to underscore firms’ immediate need for the material. In the meantime, evidence of slowing prices in the US strengthened bets that the Fed will refrain from hiking rates further, pressuring the dollar used to price copper and raising hopes of manufacturing-friendly financial conditions across economies with exposure to US credit markets. Additionally, demand is expected to be sustained in China as Beijing pledged to target CNY 1 trillion in manufacturing and infrastructure development, lifting the outlook for copper. On top of that, reports stated that the PBoC could inject CNY 1 trillion into the country’s debt-ridden property developers.