China boosts metal prices

by David Fleschen

A Politburo meeting of the ruling party in China and good US economic data have given industrial metal prices a strong boost since Friday. According to state news agency Xinhua, China will implement structural reforms and take other measures to support the economy. These include investments in infrastructure. In the US, the labor market in November was much more robust than expected (see precious metals above). Copper rose 1.7% on Friday and continues to pick up at the start of the week. At just under 6,040 USD per ton, it costs as much as at the end of July. As it has also jumped over the 200-day chart-important line, technical follow-up purchases could push the price up a bit further in the short term. In addition, good import data from China contribute to the friendly start to the new trading week. According to data from the customs authorities, China imported 483 thousand tons of copper in November, 5% more than in the previous year and the largest quantity since September 2018. Imports of copper ore and concentrate were even record high at 2.16 million tons. Iron ore is also benefiting from the current turmoil: rising by more than 6% to a three-month high of nearly $ 93 a ton, iron ore in Singapore has clearly overshadowed metal prices in London. China's high imports (90.7 million tons, 5.2% more than in the previous year) also point to good demand in the Middle Kingdom.

Source: Commerbank Research, Photo: Fotolia

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