China data to trig­ger a raise in the cop­per price

China Daily (Hong Kong) - - BUSINESS - By MENG FANBIN meng­fan­bin@chi­

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.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.