Copper cranks up one-week high on China demand hope

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Copper cranks up one-week high on China demand hope

On Wednesday, the 9th of January, 2019, the copper prices jumped on to one-week high, after reports revealed a fresh impetus in Chinese demand. The signs of progress in trade talk had also affected the price, as a feasible solution in tariff war could reinforce demand and escalate growth.

Benchmark Copper on London Metal Exchange had been up by 1.5 percent at $5,993 a ton, in the early European trading session, while the metals used in power and construction breached $6,000 level earlier, its highest since the 31st of December, 2018.

However, the initial resistance level still resides at $6,008, and a break above could unleash the opportune moment to retest $6,110. Commodities related to export and industries rose alongside copper, as tin gained 0.4 percent, nickel climbed 0.9 percent, lead added 1.2 percent and zinc posted a 0.4 percent raise.

Further copper gain might have been on the cards in 2019, as Indonesia’s Grasberg mine, the second largest copper mine of the world, is expected to drop production up to 2,00,000 ton this year from 1.2 million ton a year earlier.

While preparing this report, the copper price was 0.47 percent up at 2.6640, Jan. 9th, GMT. 20.00, posting gains two days in a row since December 20th, 2018, and the price would move further upwards, if the Beijing talk could converge a salubrious outcome.