Categories: Base Metals / Energy / General Market Commentary / Precious Metals
Topics: General Base Metals / General Energy / General Market Commentary / General Precious Metals

Copper price jumps to 6-month high

Copper price jumps to 6-month high

In early trade on Monday copper for delivery in December touched six-month highs with copper futures exchanging hands for $2.3125 per pound in New York and topping $5,000 a tonne in London dealings for the first time since end-April.

Copper has risen during 10 of the last 11 trading sessions, adding nearly 11% in two weeks. While other industrial metals and steelmaking raw materials have jumped in value this year, the bellwether metal has advanced a more modest 8% this year. The copper price hit six year lows in January following a 26% decline in 2015.

China’s economy "is now showing clear signs of a cyclical upturn in activity"
The latest leg up for the red metal was sparked by confidence that the economy of China, responsible for nearly half the world's copper demand, has returned to more robust growth. Thanks to copper application in a variety of industries including electricity, construction, manufacturing and transport, copper is often thought of as a barometer for economic activity.

During the third-quarter GDP expanded at a 6.7% rate for the third straight quarter as Beijing brought forward massive infrastructure spending and other monetary and fiscal stimulus measures from Beijing worked its way through the economy.

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