New York, July 22: Copper futures on the Chicago Mercantile Exchange (COMEX) rose on Tuesday as the outlook for metal demand in China, the top metal consumer, improved, and the prospect of a possible trade agreement between China and the United States also encouraged market sentiment. The weak dollar provided additional support.

As of the close, COMEX copper futures rose by 8.4 cents to 8.65 cents, among which the most active September 2025 copper futures rose by 8.40 cents or 1.49% to close at $5.7215 per pound.

The trading range of the benchmark copper contract is $5.575 to $5.7715.

Analysts said that there are three main factors driving copper prices higher. First, U.S. Treasury Secretary Benson announced that he would hold talks with the Chinese Finance Minister next week, and it is expected that a consensus will be reached on the postponement of the tariffs on August 12, easing market concerns about the escalation of the trade conflict between the two countries.

Second, the expectation of a recovery in China's metal demand. Recently, the Chinese government has introduced a number of policies to stabilize industrial growth, including large-scale infrastructure projects and power investment (such as the Tibet Super Hydropower Station), which stimulates the consumption prospects of copper as an industrial metal.

Third, supply tightness resonates with macro factors. Global copper mine supply is still facing disturbances, and the Federal Reserve is facing monetary policy pressure. The market generally expects that there will be a cycle of interest rate cuts in the future, which will push up commodity valuations.

Despite the current strong trend, some analysts believe that there may be a risk of profit-taking in the short term, especially in the context of the traditional off-season for copper demand. However, from a technical point of view, if the price stabilizes above $5.70, it will further open up the upside, and the target may be the integer mark of $6/pound. As the world's largest copper consumer, China's demand for copper in green energy, construction and electricity remains stable. The market also continues to pay attention to the impact of possible copper tariffs imposed by the United States. The US government announced that it will impose a 50% tariff on imported copper from August 1, which may lead to a shift in global trade flows.

The COMEX copper near-term contract has risen 13.26% so far this month and 42.93% so far this year, closing 37.41% higher on Tuesday than the same period last year.

The September copper contract on the Shanghai Futures Exchange closed 480 yuan higher at 79,640 yuan per ton on Tuesday. The August bonded copper futures on the Shanghai International Energy Exchange (INE) closed 450 yuan higher at 70,800 yuan per ton.

On Tuesday, the trading volume of the COMEX copper benchmark contract was 26,954 lots, compared with 21,517 lots on the previous trading day; the open volume was 104,832 lots, compared with 104,882 lots on the previous trading day.

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