Copper futures’ prices rose on Friday and had coffered their fourth consecutive weekly percentage gain as a significant scale of decline in inventories has been pointing towards a turnaround in demands, while traders across the globe were expecting a copper-buying spree in a near-term outlook, in particular from Chinese merchants, followed by the reveal of a comparatively stable industrial sector PMI (Purchasing Managers’ Index) last month.
Aside from that, on Friday, the copper futures’ prices in the London Metal Exchange had received another boost by the high-tides in the global stocks and crude oil futures’ prices following a slanderous slump on Thursday, almost entirely prompted by the US Federal Reserve’s dour economic projections.
Copper gains as economies reopen, China demands soar
Citing statistics, on Friday’s market London Metal Exchange wrap-up, the three-month benchmark copper added 0.5 per cent to $5,791 per ton- and had registered a 2 per cent weekly gain for the industrial base metal.
Besides, the LME 3-month copper had also hit a nearly four-month highs of $5,928 per ton on Thursday, closing its gap from a pre-pandemic closing high of $6,343 per ton. Meanwhile, adding that the easing of forced closure measures across the globe following the slanderous March and April, which apparently had witnessed the fastest global-scale peace-time recession on record, alongside a raft of relatively encouraging data from China pointing towards an uptick in demands, an industrial metal market analyst at WisdomTree, Nitesh Shah said, “With the easing of confinements by coronavirus in many parts of the world ...
demand is growing, especially in places like China. Copper is moving in parallel with the stock markets and more economic stimulus could boost the price. ” On top of that, while shutdowns of a number of copper mines across the globe due to the pandemic outbreak had also contributed to a sharp decline in copper inventories and spurred up the copper futures’ prices, a union for copper mining workers in Chile, the world’s largest copper producer, was quoted saying that the workers’ health was always more important than production goals.