Demand for copper pushes its prices up

COPPER prices rose on Wednesday to their highest in over two weeks, driven by a healthy demand outlook on the back of improving manufacturing activity in top consumer China.

The red metal rose amid bullish demand outlook following positive manufacturing data from major economies, while supply worries further aided sentiment.

Absa Bank Zambia in its daily market report showed that China’s manufacturing activity expanded for the first time in six months in March.

“Three-month copper on the London Metal Exchange was up 0.7 percent at US$9, 056.50 per metric tonne.

“The most-traded May copper contract on the Shanghai Futures Exchange closed the morning session up 0.9 percent at 73, 780 yuan (US$10, 198.36) per ton, rising for a fifth session in a row,” the report indicated.

Meanwhile, Access Bank in its report showed that oil prices also extended gains on Wednesday, as investors mulled supply risks stemming from Ukrainian attacks on Russian refineries and the potential for escalation in the Middle East conflict.

Brent crude futures for June rose 76 cents, or about 0.9 percent, to US$89.68 per barrel, having hit a high of US$89.87 earlier in the session.

United States West Texas Intermediate crude futures for May gained 62 cents, or 0.7 percent, to US$85.77 a barrel.

On Gold, the report showed: “gold prices rose to a fresh record high on Tuesday as demand from momentum-following funds offset a strong U.S. dollar and the possibility of higher forlonger United Stated rates.

“Spot gold was up 0.5 percent to US$2, 262.51 per ounce, after hitting an alltime high of US$2, 266.59. The bullion has been hitting fresh record highs for three sessions in a row.”