Copper climbs to near 4-year high as China halts top producer
Copper in London surged to the highest in almost four years after China ordered its top producer to halt output to combat winter pollution, fuelling a rally this year driven by optimism about demand and supply disruptions at mines. Jiangxi Copper Co. was told to cut production for at least a week before a new assessment is made on local pollution levels. Earlier in the month, the No. 2 smelter, Tongling Nonferrous Metals Group, was asked to make similar cuts. The advance in 2017 has been backstopped by supply disruptions just as the outlook for global growth improves and investors and miners target potential new uses, including in electric vehicles. The world’s largest producer, Chile’s Codelco, has said prices may test records above $10,000, while UBS Group AG’s wealth management unit on Wednesday predicted further gains. The China shutdown news is certainly propping up copper further than it would be potentially without it. Copper for delivery in three months rose 1.6% to $7,236.50 a metric ton ($3.28 a pound) on the London Metal Exchange as trade resumed after the Christmas break. The price earlier touched $7,259, the highest since January 2014. The metal has now risen for nine days, the longest streak since 2004, and has gained 31 percent this year, the most among LME metals after aluminium.
Source: Investing
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