RE: $3 per lb20 Aug 2020 00:06
Copper rose above $3 a pound for the first time in more than two years on Wednesday, on the back of falling inventories, a lower US dollar, unprecedented Chinese economic stimulus and ongoing worries about pandemic-hit supply from top producer South America.
Copper for delivery in September trading in New York changed hands for $3.0295 a pound ($6,680 a tonne) in afternoon trade on Wednesday – the highest level since June 2018 and up more than 50% from the covid-19 lows struck in March.
Copper inventories in warehouses operated by the London Metal Exchange fell to 107,525 tonnes this week, down by more than two thirds over the past year and the lowest since August 2007.
New York Comex and Shanghai Futures Exchange inventories are up over the past year, but the combined total is still 165,000 tonnes below August 2019.
At the same time, China’s refined copper output in July fell 5.3% from the previous month to 814,000 tonnes, according to government data.
“You have the perfect ****tail of price supporting factors with pick up in demand, supply issues, and expectations for a weaker dollar,” Saxo Bank analyst Ole Hansen told Reuters.