Copper jumped to the highest since January 2023 as fast-mounting supply risks and fresh signs of a rebound in demand reinforced hopes that the bellwether industrial metal is plotting a course to new record levels. Prices rose as much as 3.2% in London, getting an initial boost after unexpectedly strong US jobs data showed the ongoing strength of the US economy. The rally accelerated after a report showing a slowdown in the US services sector reinforced hopes that the Federal Reserve will soon pivot to looser monetary policy. Fed Chair Jerome Powell said Wednesday the central bank will let incoming data guide its decisions, and is unlikely to cut rates until it has stronger confidence that inflation is receding. Economic data from China in recent days has helped to boost demand expectations for industrial metals. China’s manufacturing purchasing managers index in March beat expectations, while the US factory gauge logged a surprise expansion. Copper has risen 8.2% this year, driven largely by concerns about risks to supply. Mine production tightened unexpectedly after last year’s closure of a giant facility in Panama. Chinese smelters, which produce over half the world’s supply of refined copper, have been moving closer to implementing a joint output cut because the tightening ore supplies have driven processing fees to near zero. To be sure, some smelters are still planning major expansions, and rising stockpiles in the Chinese market point to ongoing softness in demand in some key sectors. In the coming weeks investors will be watching Shanghai exchange inventories closely to gauge both the strength of demand and the extent of any capacity curtailments.