Copper Prices Surge Amid Supply Tightness and Chinese Demand Hopes
Copper prices soared to their highest intraday levels since January 2023, driven by tightening supply conditions and optimism surrounding a potential recovery in Chinese demand.
On Monday, prices surged as much as 1.7% to reach $9,484.50 per ton, marking a 15% increase over the past two months.
Major disruptions at key mines have led smelters to pay historically high prices for mined ore, while Chinese plants, responsible for over half of global refined copper production, are considering joint output cuts in response to the supply constraints.
Investor sentiment has also been buoyed by positive indicators from the world’s second-largest economy. China’s official manufacturing Purchasing Managers’ Index (PMI) for March reached its highest level in a year, signaling robust economic activity. Additionally, strong export data and rising consumer prices further fueled optimism.
Ewa Manthey, a commodities strategist at ING Groep, noted that the increasing demand for renewables and electric vehicles (EVs) in China has offset declines in more traditional sectors like the property market, with this trend expected to continue throughout the year.
Shares of Chinese copper producers, including Yunnan Copper Co. and Jiangxi Copper Co., experienced gains on Monday, reflecting the positive market sentiment.
In contrast, aluminum, nickel, and zinc prices saw declines in London trading.
SOURCE:mining.com
