China demand signals prompt calls for late-year copper price surge

From cars to air-conditioning units, copper intensive sectors are showing signs of an unexpected boom in China, prompting calls that the metal's price could rise further into next year amid shrinking supply stocks, Fastmarkets understands.

Hitting $6,380 per tonne last week, the London Metal Exchange's three-month copper price has surged past pre-pandemic levels to its highest since June 2018, despite lingering market concerns over the global economy, for which the metal is often seen as a bellwether.
But as China's central bank targets small-to-medium sized businesses in an unprecedented liquidity provision push, analysts and investors are reporting promising signs that demand for copper could continue to beat expectations, Fastmarkets heard.
"This is more than just a stocking drive - the end use data is very real," Citi metals strategist Oliver Nugent told Fastmarkets. The United States bank is forecasting copper prices to hit $8,000 per tonne within the next 12 months.

"Growth...

Published

Archie Hunter

September 08, 2020

11:52 GMT

London