• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 1 day GREEN NEW DEAL = BLIZZARD OF LIES
  • 6 days Does Toyota Know Something That We Don’t?
  • 5 days World could get rid of Putin and Russia but nobody is bold enough
  • 2 days America should go after China but it should be done in a wise way.
  • 7 days China is using Chinese Names of Cities on their Border with Russia.
  • 9 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 9 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 9 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 8 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 8 days Putin and Xi Bet on the Global South
  • 9 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 10 days United States LNG Exports Reach Third Place
  • 10 days Biden's $2 trillion Plan for Insfrastructure and Jobs
Iron Ore Prices Rise as China Ramps Up Imports

Iron Ore Prices Rise as China Ramps Up Imports

Despite challenges like the Evergrande…

MINING.com

MINING.com

MINING.com is a web-based global mining publication focusing on news and commentary about mining and mineral exploration. The site is a one-stop-shop for mining industry…

More Info

Premium Content

Copper Futures Jump On Strong Chinese Demand

Copper prices rose on Friday, tracking gains in the equities market buoyed by optimism over the global economic recovery on positive US labour data and its faster-than-anticipated covid-19 vaccination roll-out plans.

Copper for delivery in May was up 2.11% by midday, with futures touching $4.06 per pound ($8,932 a tonne) on the Comex market in New York.

Equities markets rose as the United States completed its 100 million covid-19 vaccine shots 42 days ahead of schedule and posted a drop in unemployment benefits claims.

“Dow futures have rallied by some 130 points … and metals are duly following its lead,” Malcolm Freeman, a director at UK broker Kingdom Futures told Reuters.

The gradual slide in industrial metals prices, however, continued this week.


Source: Capital Economics

“The main news of the week – the blockage of the Suez Canal – failed to give a lift in prices, probably because the trade-in refined metal will be largely unaffected,” said Capital Economics’ commodities team on its weekly wrap.

“We had always suspected that the rally in the copper price could not be justified by underlying fundamentals and we expect further falls later this year.”

The bull and bear case for copper price

Industry opinion is strongly – and evenly – divided between the two camps.

“Bears will point out that this year’s price spike occurred during Lunar New Year when Chinese traders were away, indicating that the surge was largely speculatively driven, without much fundamental support and during the quiet season for consumption in the Rest of the World,” said Roskill.

“The bulls rightly argue that with the Mainland’s fabricators reigniting their furnaces from maintenance shutdowns demand will pick up sharply,”

Chinese industrial production surged 35% yoy in Jan-Feb 2021.

ADVERTISEMENT

“Any meaningful disruption to supply will quickly create physical shortages that would push cathode premiums and prices sharply higher,” said Roskill.

By Mining.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News