Copper futures’ prices shot up on Thursday in the London Metal Exchange shortly after the Chinese Govt. data had reflected a solid economic recovery. In point of fact, copper futures, often ascribed as a critical gauge of global economic health, added 0.2 per cent to $6,708 a ton in London Commodity market closure, while the most-traded Shanghai copper futures scheduled to be expired on October ended the day slightly lower amid frets of a supply glut.
Notably, latest rise in economic bellwether copper futures’ prices followed a steady recovery in China’s services sector, while an industry survey had revealed earlier on the day that the China’s large-scale service sectors had reported solid gains for the fourth straight month in a row in August, eventually nourishing investors’ hope of a quicker-than-anticipated global economic recovery.
Copper futures gain after China hint solid recovery
Apart from an upbeat services sector reading in August, earlier this week China’s Govt. data had also revealed that the world’s No. 2 economy had reported a solid expansion in manufacturing activities last month, while the export-oriented economy of China had also witnessed its first increase in export orders last month, amplifying market participants’ optimisms of a concrete current-quarter gain in China factory activity following two straight quarter of diabolical downturns stemmed off the pandemic outbreak which in effect had spurred up demands for a number of industrial metals alongside copper futures.
Besides, in concomitances to a raft of upbeat China data fleshing up hopes of an earlier economic recovery, a decline in copper production in the world’s largest copper producer Chile had also contributed to the recent rise in copper futures’ prices.
July output of Chile’s state-backed miner Codelco was tottered as much as 4.4 per cent on a year—on-year basis, in part due to a forced lockdown measure in place amid a shocking rise in outbreak in the LATAM country.