Copper price shoots to new record on US economic outlook

Copper shot up to a new all-time high on Thursday, as an improved growth forecast for the US economy gave further boost to the metal’s rally.

Three-month futures on the London Metal Exchange advanced as much as 2.1% to $11,800.50 a ton, surpassing a record set on Monday.

The move follows an upgraded economic outlook from the US Federal Reserve, which projects the world’s largest economy to grow 2.3% next year, up from 1.8% previously.

The Fed forecast provides a jolt to the demand outlook for industrial metals, in particular copper, as it is used in almost every key sector and is vital to the clean energy transition.

Traders also reacted positively to the Fed’s widely anticipated interest rate cut, as the central bank sees US inflation slowing down to 2.4%.

So far this year, copper has risen by nearly 35% on the back of a healthy demand outlook and concerns over supply.

Earlier this week, copper rallied after China, the top US rival and the world’s largest consumer, signaled that it would stick with a “proactive” fiscal approach.

(With files from Bloomberg)