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Copper Prices Soar as Chinese Economic Data Fuels Optimism

Copper Prices Soar as Chinese Economic Data Fuels Optimism

Posted on April 2, 2024
Writer: James Miller

Copper prices surged above $9,000 a ton, fueled by promising manufacturing data from China and the potential for cutbacks in production by the country’s leading smelters. 

The positive momentum comes as China’s official manufacturing purchasing managers index for March hit its highest level in a year, signaling robust economic recovery.

In the U.S., a factory gauge unexpectedly ended a 16-month decline, adding to the optimistic outlook. Analysts note the recovery in the manufacturing sector boosts demand for raw materials like copper, which now faces potential supply constraints.

Chinese smelters, who account for more than half of the global refined copper, are considering output reductions due to near-zero processing fees. This potential scenario could lead to a tighter supply of copper in the near future, a factor that investors and traders should keep a close eye on.

Despite concerns over the potential dampening of the commodity outlook due to robust U.S. factory data, copper has demonstrated its resilience. Its rise to $9,011 a ton on the London Metal Exchange, along with significant gains in aluminum and zinc, underscores the stability and strength of the metal market.

For further insights into the factors driving copper prices and their implications for global markets, read the full article on Yahoo Finance.

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