RE:From: WEALTH DAYLY: Why Copper Prices will RiseThank you Best NYC, makes total sense and obviously the chinese thinks so hence the buying they've been doing the last few months reinforced by this article from Bloomberg.
Copper Advances to Eight-Week High as Chinese Imports Climb
Copper climbed to an eight-week high in New York after imports of the metal by top user China climbed to the highest in 14 months.
Shipments of unwrought copper and copper products by China rose to 410,680 metric tons in July, the highest since May 2012, the customs agency data showed today. Total exports rose 5.1 percent from a year earlier, compared with the median estimate for a 2 percent increase in a Bloomberg survey and June’s 3.1 percent drop.
“China’s economy looks like it’s going to continue to grow and that should be positive for commodities demand,” said Richard Fu, director for Asia commodity trading at Newedge Group SA in London, by e-mail. “There is still huge demand from there in the long term.”
Copper for delivery in September rose 3 percent to $3.2685 a pound at 8 a.m. on Comex in New York. Prices earlier today rose to $3.2695 a pound, the most since June 11 and climbed above the 100-day moving average for the first time since February.
Chinese imports advanced almost 11 percent, leaving a trade surplus of $17.8 billion. The government signaled last month that it will defend its 7.5 percent economic-growth target for the year after expansion slowed for a second quarter.
Copper stockpiles monitored by the LME fell for a 17th day to 597,575 metric tons, the lowest since April 12. Inventories in Malaysia’s Johor, the biggest repository for the metal, dropped 15 percent last month. Canceled warrants, or copper bookings, fell 1.4 percent to 316,225 today, bourse data showed today.
Aluminum for delivery in three months rose 1.7 percent to $1,820.50 a ton on the LME. Rio Tinto Group, the world’s second-largest mining company, will stop production at its smelter in Shawinigan, Quebec, it said yesterday, citing dated technology and weak aluminum prices. Rio Tinto will halt half of the plant’s 100,000 tons-per-year capacity immediately and complete the shut down by the end of November, it said.
On the LME, copper, nickel, zinc, lead and tin rose.
To contact the reporter on this story: Agnieszka Troszkiewicz in London at
atroszkiewic@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter at
ccarpenter2@bloomberg.net
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