Chinese govt silences copper, iron ore bull narratives to rein in price spike [CORRECTED]

Major Chinese copper brokers and traders have been ordered to refrain from making bullish statements on metal prices by government officials in attempts to rein in the bullish sentiment of recent weeks.

Prior to China's Labor Day holidays, conversations were held with a few traders on their copper market positions at individual meetings arranged by Chinese government officials overseeing commodity markets, according to three sources with knowledge of the matter.
One source said that officials warned that remarks boosting positive sentiment in the copper markets could go against the spirit of recent public comments made by senior politicians.
On April 11, Premier Li Keqiang had highlighted the negative impact of sharp increases in commodity prices on the operational costs of enterprises in China, which is targeting 6% growth in its economy this year.

In morning trading on Friday May 7, copper’s three-month futures price reached an all-time high on the London Metal Exchange of $10,523 per tonne....

Published

Julian Luk

May 07, 2021

16:18 GMT

London