Copper prices have surged to a three-month high, propelled by increased buying activity in China. The upswing follows indications of a recovery in factory activity within China’s economy. The three-month copper contract on the London Metal Exchange (LME) climbed as much as 1.3 per cent to $US10,000 a tonne on Tuesday, mirroring gains observed during the final hour of trading in Shanghai.
The increase aligns with recent data suggesting an improvement in Chinese manufacturing. This improvement indicates that China, a leading consumer of copper, is potentially benefiting from a reduction in trade tensions with the United States. The rise in copper prices reflects optimism surrounding China’s economic outlook and its impact on global demand for the metal.
Al Munro, an analyst at Marex Group, noted the significant influence of Chinese buying on the day’s market movements. Munro stated that positive flows and data observed by their desk supported the upward trend, irrespective of broader macroeconomic speculation. This suggests a strong underlying demand for copper driven by China’s industrial sector.
The surge in copper prices highlights the sensitivity of the metal market to developments in China, reinforcing its position as a key driver of global commodity demand. Market participants will closely monitor further economic indicators from China to gauge the sustainability of this upward trend in copper prices.
