Copper Prices Soar as China's Demand Pushes Metal Towards Record High
Copper prices rose on Tuesday due to strong demand in China, pushing the metal back towards its record high. The benchmark three-month copper price on the London Metal Exchange (LME) increased by 0.61% to US$14,750.5 a metric ton.
The most-traded copper contract on the Shanghai Futures Exchange jumped 1.56% to 111,670 yuan (US$16,675.88) a tonne, helped by renewed speculative support and expectations that Chinese buyers would rebuild inventories before holidays on Sept 25 and from Oct 1 to 7.
The Yangshan copper premium, a gauge of Chinese appetite for imported copper, fell to US$119 a tonne on Monday but was still 65% above the start of the month. Available copper stocks in LME-registered warehouses fell to 133,725 tonnes on Monday after 9,600 tonnes of fresh cancellations in Asia.
Traders were awaiting a meeting between US President Donald Trump and Chinese President Xi Jinping for signals on trade ties and the global economic outlook.