Copper continues to defy earlier forecasts for it to decline as it reached its highest value in nearly five months.
The metal slid by 10% earlier this year in February behind a copper financing issue in China. This led to analysts predicting a further fall towards a price of $6,000 per ton that copper has since left behind.
Instead, the commodity often used in construction and electronics rose beginning in March and is up 7% in the past two weeks. A ton of copper on the London Metal Exchange (LME) was trading today at $7,180 to revisit the high last reached on February 20.
A big contributor for its surprise climb is the increase of demand coming a resurgence in the largest economies and metal users of the world in the United States and China. Together, the two amount utilized by the two countries account for more than 40% of global metal output and have helped prices of lead, nickel, zinc, and aluminum to advance.
Financial services firm Macquarie says that China’s demand for copper alone is predicted to increase by 5.5% this year putting additional strain on LME monitored warehouses that have fallen to an inventory of 154,700 last week from 700,000 tons the previous year.
More output is expected to be produced within the next two years, however, as mining operations grow to maintain a global surplus. The top producer of copper in Chile has already begun production last May together with June’s commencement of Sierra Gorda from KGHM.
Fund managers have also given copper increased attention after the strong showing of industrial metals in the second quarter. Some investors are likewise repositioning themselves after expecting copper to slide down behind a financing scandal leading to its rise in value.
The material has been provided by InstaForex Company – www.instaforex.com
Copper continues to defy earlier forecasts for it to decline as it reached its highest value in nearly five months.
The metal slid by 10% earlier this year in February behind a copper financing issue in China. This led to analysts predicting a further fall towards a price of $6,000 per ton that copper has since left behind.
Instead, the commodity often used in construction and electronics rose beginning in March and is up 7% in the past two weeks. A ton of copper on the London Metal Exchange (LME) was trading today at $7,180 to revisit the high last reached on February 20.
A big contributor for its surprise climb is the increase of demand coming a resurgence in the largest economies and metal users of the world in the United States and China. Together, the two amount utilized by the two countries account for more than 40% of global metal output and have helped prices of lead, nickel, zinc, and aluminum to advance.
Financial services firm Macquarie says that China’s demand for copper alone is predicted to increase by 5.5% this year putting additional strain on LME monitored warehouses that have fallen to an inventory of 154,700 last week from 700,000 tons the previous year.
More output is expected to be produced within the next two years, however, as mining operations grow to maintain a global surplus. The top producer of copper in Chile has already begun production last May together with June’s commencement of Sierra Gorda from KGHM.
Fund managers have also given copper increased attention after the strong showing of industrial metals in the second quarter. Some investors are likewise repositioning themselves after expecting copper to slide down behind a financing scandal leading to its rise in value.
The material has been provided by InstaForex Company – www.instaforex.com
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