Boosted by predictions that top customer China would increase stimulus to promote economic growth and demand, London copper prices rose on Monday. By GMT 0203, three-month copper was up 0.2% on the London Metal Exchange at &8,468.50 per metric tonne, following a week-long loss due to disappointment with China’s mild stimulus efforts. Investors are looking forward …
Boosted by predictions that top customer China would increase stimulus to promote economic growth and demand, London copper prices rose on Monday. By GMT 0203, three-month copper was up 0.2% on the London Metal Exchange at &8,468.50 per metric tonne, following a week-long loss due to disappointment with China’s mild stimulus efforts.
Investors are looking forward to a Politburo meeting in China this week, where policymakers may announce additional stimulus to measure to boost industrial demand. China’s state planner outlined steps on Monday to promote, stimulate and spur private investment activity.
On the Shanghai Futures Exchange, the most-traded August copper contract fell 0.2% to 68,470 yuan per metric tonne. Copper consumption in the world’s largest consumer remains down in the short term. According to CITIC Futures, operation rates among copper product companies in China are expected to fall in July, with some even falling below last year’s July level. Last Friday, copper inventories on the SHFE fell 5.8% after growing for three weeks in a row. The copper premium in Yangshan fell to a two-month low of $46 per metric tonne, reflecting lower import demand.
The market is also anticipating interest rate decisions from the Federal Reserve of the United States and the European Central Bank this week.
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