Copper soars on positive data out of China

Copper soars on positive data out of China
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Copper prices on the London Metal Exchange (LMW) reached two-year highs as of Sept. 1 in response to strong manufacturing activity in China, a weaker dollar and falling inventories, according to Reuters.

Benchmark copper on the LME increased 1.5 percent to reach $6,768 per metric ton. It earlier reached $6,830 per metric ton, the highest since June 2018. According to Reuters, this represents a gain of 56 percent from mid-March.

The Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) increased from 52.8 in July to 53.1 in August, its fourth consecutive month of growth and the biggest rate of expansion since January 2011, the article notes.

Copper stocks at LME-registered warehouses were at 88,250 metric tons, which, according to the Reuters article, is the lowest they have been since December 2005, having decreased by almost 70 percent since mid-May.

“Canceled warrants—metal earmarked for delivery and no longer available to the market—at more than 50 percent of the total have also fueled worries about supply on the LME market,” Reuters adds.

China accounts for nearly half of copper’s global consumption.

According to Seeking Alpha, three-month copper forwards on the LME increased 1.2 percent to $6,754 per metric ton, the highest level since June 2018.

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Source: Recycling Today
Copper soars on positive data out of China
<![CDATA[Copper prices on the London Metal Exchange (LMW) reached two-year highs as of Sept. 1 in response to strong manufacturing activity in China, a weaker dollar and falling inventories, according to Reuters.Benchmark copper on the LME increased 1.5 percent to reach $6,768 per metric ton. It earlier reached $6,830 per metric ton, the highest since June 2018. According to Reuters, this represents a gain of 56 percent from mid-March.The Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) increased from 52.8 in July to 53.1 in August, its fourth consecutive month of growth and the biggest rate of expansion since January 2011, the article notes. Copper stocks at LME-registered warehouses were at 88,250 metric tons, which, according to the Reuters article, is the lowest they have been since December 2005, having decreased by almost 70 percent since mid-May.“Canceled warrants—metal earmarked for delivery and no longer available to the market—at more than 50 percent of the total have also fueled worries about supply on the LME market,” Reuters adds.China accounts for nearly half of copper’s global consumption. According to Seeking Alpha, three-month copper forwards on the LME increased 1.2 percent to $6,754 per metric ton, the highest level since June 2018.]]>