HomeMarket NewsMiningCopper Price Skyrockets as Optimism for End to Fed’s Rate Hikes Grows

Copper Price Skyrockets as Optimism for End to Fed’s Rate Hikes Grows

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The past two years have been a rollercoaster ride of higher borrowing costs and a relatively strong dollar, creating a turbulent atmosphere for metals.

However, a recent spark of hope has ignited due to a pledge from China’s central bank to provide financial support for the property sector, a major consumer of industrial metals, resulting in elevated expectations for increased copper consumption.

Amidst the excitement, Dan Smith, head of research at Amalgamated Metal Trading, expressed, “There’s a fair amount of stimulus in the pipeline and we are in a seasonally strong period.”

He added, “For me, copper demand looks strong in China, primarily in the green sectors. We know utilization rates at wire rod plants picked up into mid-November.”

Price Surge

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The surge in copper prices is evident, with December delivery prices rising by 2.1% on the Comex market in New York, reaching a staggering $3.81 per pound ($8,382 per tonne).

[Interactive Copper Prices Chart]

Global Impact

Concerns have been raised about reduced ore processing due to protests at First Quantum Minerals’ Cobre Panama mine, responsible for 1% of global copper output, contributing significantly to the ongoing support of copper prices.

Related News: First Quantum to halt Panama mine if blockade goes on

(With files from Reuters and Bloomberg)


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