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Chinese Stimulus Hopes Support Copper Price - Report

Metal News - Published on Thu, 13 Jun 2019

Image Source: Livemint
Copper prices touched their highest point in two weeks this week, lifted by hopes that top consumer China will pump money into building metals-intensive infrastructure. News that China will allow local governments to use proceeds from special bonds as capital for investment projects came after the United States and Mexico reached a deal on Friday to avert US tariffs on Mexican goods, supporting prices of copper and other metals. Benchmark copper on the London Metal Exchange also reached USD 5,956 a tonne in intraday trading before slipping back to finish only USD 2 up from Monday's close at USD 5,876.

Fears that trade disputes will damage economic growth and metals demand had helped to push down copper prices by 15% from an April high to a five month low of USD 5,740 on Friday.

Capital Economics analyst Ross Strachan said that "Optimism is stemming from talk of additional stimulus out of China. It's not a major surprise that markets have latched on to some positive news. It's been a bit of a bloodbath recently."

Source :

Posted By : Rabi Wangkhem on Thu, 13 Jun 2019
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