Copper prices are approaching their May 2024 record of $11,104.50/t, supported by easing US-China trade tensions, ongoing supply disruptions, and expectations of another Federal Reserve rate cut following softer-than-expected US inflation data, ING's commodity experts Ewa Manthey and Warren Patterson note.

Copper outlook brightens as downside risks ease

"Copper is edging closer to a record high of $11,104.50/t it reached in May 2024. A US-China deal would remove one of the key downside risks to Copper’s outlook. With supply disruptions stacking up and trade optimism growing, the outlook for Copper is starting to look brighter."

"Expectations of another Federal Reserve interest rate cut this week, following a softer-than-expected US inflation report last Friday, have also given industrial metals a further boost."