Supply Chain Council of European Union |

Copper near 2-year high as Chinese factory output accelerates

LONDON, Sept 15 (Reuters) – Copper prices hovered near
two-year highs on Tuesday after strong manufacturing data in
China, the biggest consumer, boosted confidence in the demand

A positive mood rippled through markets, lifting global
equities, while the yuan jumped to its strongest in 16 months
against the dollar, helping metals by making them cheaper for
Chinese buyers.

Benchmark copper on the London Metal Exchange (LME)
was down 0.2% at $6,783 a tonne at 0944 GMT but within striking
distance of a 26-month high of $6,830 reached on Sept. 1.

“The Chinese data show there’s still a very positive
backdrop for industrial metals and copper in particular,” said
Capital Economics analyst Kieran Clancy.

He said traders had already priced in a strong rebound in
Chinese demand, with copper up more than 50% from a low in
March, but that prices would continue to rise at a slower pace.

FACTORIES: China’s industrial output accelerated the most in
eight months in August and retail sales grew, suggesting the
economic recovery is gathering pace. U.S. industrial production data is due at 1315 GMT.

VACCINE: A Chinese official said coronavirus vaccines being
developed in China may be ready for use by the general public as
early as November, boosting confidence in the economic rebound.

INVENTORIES: On warrant copper stocks in LME-registered
warehouses rose to a three-week high of 45,950 tonnes but have
fallen from around 250,000 tonnes in May.

SPREAD: In a sign of tight nearby supply, cash copper on the
LME traded at an $18.50 premium to three-month metal.

ALUMINIUM: China’s aluminium production in August rose 2.3%
from a month earlier, setting a record high for a second month.

OTHER METALS: LME aluminium was up 0.4% at $1,807 a
tonne, zinc rose 1.5% to $2,518, nickel slipped
0.2% to $15,240, lead gained 0.4% to $1,934.50 and tin was down 0.3% at $18,100.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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