China data to trigger a raise in the copper price
Strong economic data and increased demand are driving up copper prices in China after they slumped by nearly 10 percent earlier this year.
The commodity came under pressure after it appeared that the United States President Donald Trump had put his $1 trillion infrastructure plans on the back burner until 2018.
But improved economic forecasts for China saw the copper price on Monday jump to 42,769 yuan ($6,365) per metric ton from the lowest point of 37,606 yuan in May.
“China has become the new engine for cooper growth,” said Xu Ruoxu, an analyst from Shenwan Hongyuan Securities in Shanghai.
“The country accounts for 45 percent of global copper demand and has helped fuel increased prices after Trump appeared to put his infrastructure plans on hold,” Xu added.
Copper prices are closely tied to China’s economic prospects, a research report from Citibank stated.