• 2 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 5 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 8 minutes The Inconvenient Truth Of Electric Cars
  • 4 hours Here we go folks, the wish of so many: Pres. Trump threatens to lessen US security role in Strait of Hormuz, unveils sanctions
  • 2 hours Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 21 hours Wonders of Shale - Gas, bringing investments and jobs to the US
  • 3 hours To be(lieve) or Not To be(lieve): U.S. Treasury Secretary Says U.S.-China Trade Deal Is 90% Done
  • 11 mins The Plastics Problem
  • 4 hours Looks like Trump is putting together a "Real" Coalition to protect Persian shipping lanes. Makes perfect sense. NO Fake "Coalition's of the Willing" UPDATE REUTERS Pompeo "Sentinel Program"
  • 16 hours Here We Go: New York Lawmakers Pass Aggressive Law To Fight Climate Change
  • 16 hours The Strait of Hormuz is the world’s most important oil transit chokepoint
  • 6 hours Cap and trade: What could Oregon’s carbon policy cost you?
  • 12 hours Hard To Believe: UAE Will Work To Defuse Middle East Tension
  • 21 hours Is $60/Bbl WTI still considered a break even for Shale Oil
  • 10 hours Oil Demand Needs to Halve: Equinor
  • 1 hour On the hobby side of things
Alt Text

What The Market Is Overlooking In The Occidental Deal

Occidental Petroleum has caught a…

Alt Text

This Supermajor Is Leading The Energy Sector

This supermajor has been standing…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

Copper Prices Ignited By Chinese Demand Growth

A couple of very important notes for the copper market the last few days. Which have the price for the red metal once again showing unexpected strength.

The first was a major headline across mining news outlets on Wednesday: the sudden resurgence of copper imports into the key market of China.

Reuters reported that China’s March copper imports actually hit an all-time high — at 570,000 tonnes for the month. Representing a notable 39 percent increase from the same month in 2015. Related: U.S. Oil Supply To Fall Faster Than Expected

That was enough to lift China’s total Q1 copper imports to 1.43 million tonnes — an increase of over 30 percent as compared to the year-ago period.

That news got the market excited, lifting the copper price off the $2.10 per pound mark where it had been languishing — and back toward $2.20. Stemming a decline in the price that had been in motion since late March.

And even as all eyes were on the copper price, another less-reported news item emerged in Australia. Showing that some buying action may also be ahead when it comes to copper stocks. Related: Saudi Arabia Steps Up Drilling Despite Downturn

That was a report from the Sydney Morning Herald that several Chinese miners are accelerating their hunt for copper assets. With the paper interviewing officials from PanAust — a former ASX firm, now controlled by Chinese conglomerate Guangdong Rising Asset Management — who said they’ve been given a mandate to go out and acquire copper projects globally.

PanAust said that it has been in “several” data rooms lately looking at potential copper projects. Suggesting that we could see this China-backed firm pull the trigger on an acquisition soon. Related: Is The Golden Age Of Gas Nothing More Than A Bubble?

And that’s not the only Chinese company apparently in the hunt for new projects. With the same report also noting that China Molybdenum Company is similarly seeking global copper assets for purchase.

All of which suggests that interest in copper is stronger than many investors believe right now. And we could see some big purchases coming — both in physical metal and in mines and development projects.

Watch for announcements on both.

Here’s to a copper bottom

By Dave Forest

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage


Leave a comment
  • CK on April 30 2016 said:
    Is it possible the Chinese would rather have copper than yuan currency?

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News