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China's economic recovery stimulates soaring copper prices

China’s economic recovery stimulates soaring copper prices

by YCPress

Reference News Network reported on October 26 that the US media said that copper prices have risen to the highest point in nearly two and a half years. This highlights the strong momentum of China’s economic recovery and investors’ expectations that the transition to electric vehicles will stimulate Demand for industrial metals.

According to a report by the Wall Street Journal website on October 22, on the New York Mercantile Exchange (COMEX), the most actively traded copper futures price rose to nearly US$3.2 per pound on the 21st, reaching the highest level since June 2018. The 6-month rebound rate reached about 40%. On the London Metal Exchange, the global benchmark, copper prices have also soared. Although there was a fall back on the 22nd, the rising trend that lasted for several weeks showed that China’s demand for this material that can be used to make everything from smart phones to housing is rising faster than expected.

According to reports, boosted by the rebound in China’s economy, prices of other industrial metals such as aluminum and nickel have also climbed. China is the world’s largest copper consumer, and copper demand accounts for about half of the world. Unlike the United States and Europe, China has basically curbed the spread of the epidemic in recent months after the economic shutdown caused by the new crown epidemic at the beginning of the year. This has allowed the recent recovery of business and tourism, which has promoted economic growth and stimulated copper and other industries. The demand for metals.

The report believes that the strong performance of copper highlights that China is the only major economy expected to achieve growth during the epidemic this year, and may continue to be a rare bright spot in promoting global growth.

The report also pointed out that another factor driving the rise of copper prices is that people expect that China and other large economies will need large amounts of copper to promote the adoption of electric vehicles and renewable energy technologies.