London Copper futures near eight-year peak on demand hopes, decline in inventories

by   |  VIEW 965

London Copper futures near eight-year peak on demand hopes, decline in inventories

On Wednesday, the economic bellwether Copper futures’ prices winded down the day’s commodity market just a notch shy of its eight-year peak as a flurry of upbeat economic data from Beijing and Washington shored up investors’ morale, while a steep drop in inventories alongside a softer American currency coupled with a vaccine rollout in a majority of G20 economies, had reinforced investors bet on copper futures’ prices, a closely monitored proxy for the health of global economy.

In point of fact, latest round of breakneck rally in copper futures’ prices came forth days after National Statistics Office of China had unveiled earlier this week that the country’s manufacturing output had hit a nearly 20-month peak in November, while US Commerce Department said in a statement on Tuesday that the United States’ factory output rose by 0.8 per cent in November, beating an analysts’ estimate, eventually propping up investors’ sentiment over an earlier-than-expected economic recovery.

Aside from that, a decline of nearly 30 per cent in Copper stockpiles in the London Metal Exchange since mid-October, had also spurred up a copper futures’ buying-spree.

Copper futures head towards eight-year peak

Citing statistics, in the day’s London Metal Exchange closing bell, benchmark copper futures soared 0.7 per cent to $7,837, closer to its eight-year peak of $7,973.50 hit last Friday.

Among other industrial metals, Aluminum futures ended the day 0.3 per cent higher to $2,035 per ton, Zinc rose by 0.5 per cent to $2,830 a ton, whole tin futures’ prices jumped 1.2 per cent to $19,935 per ton. Meanwhile, addressing to a barrage of upbeat factory data in the US and China alongside a vaccine rollout in a number of major global economies, a Commerzbank analyst Daniel Briesemann said, “Chinese manufacturing data were robust, we had quite good U.S.

industrial production data and the dollar is weaker, which helps the entire commodities space”.