CHART: Copper price is being held hostage by Beijing
me-metals: December copper was treading water on Tuesday trading at $4.36 per pound ($9,610 per tonne) in Chicago. At the end of September copper comfortably scaled $10,000 a tonne after Beijing announced a raft of mostly monetary measures to stimulate the country’s slowing economy and in particular its besieged property sector.
According to me-metals cited from mining.com, The rather hopefully named Beijing “bazooka” was expected to be followed up by another stimulus blitz the following week, this time focused more on fiscal policy and infrastructure investment, but the latter turned out to be a damp squib, with prices down 9% since then.
Next week could be another make or break moment for the copper price in a highly anticipated meeting of the Standing Committee of China’s National People’s Congress, the country’s highest lawmaking body, scheduled for 4–8 November.
Copper markets will be hoping for more detail of the scale and nature of Beijing’s stimulus measures, but in a note the copper service of Benchmark Mineral Intelligence points out that the announcement did not mention debt or fiscal policy on the agenda, so it remains to be seen how forthcoming policymakers are with details:
“If the meeting fails to shine further light on the scale of fiscal stimulus, we expect copper prices to come under renewed pressure. We note that copper prices have trended significantly above their implied relationship with the USD index since the announcement of China’s stimulus ‘blitz’ in late September.
“If Chinese authorities follow through on the market’s expectations, we could see a permanent step-change in this relationship (just like we did post-COVID). Conversely, if the market loses faith in China’s stimulus efforts and deems them inadequate or superficial, our regression analysis suggests that copper stands to drop by close to $1,000 per tonne.”
source: mining.com
Related News
One last month
One last month
One last month
One last month
Top News
Australia’s CEFC invests $75m in homegrown critical minerals
Glencore in talks to sell Philippine copper smelting unit
BHP seeks Brazil growth to emerge from shadow of mining disaster
Rasul Khalife Soltani, Secretary of the Iranian Steel Producers Association on the sidelines of the 1403 Steel Symposium:
Mobarakeh steel is producing green steel through scrap recycling
Norilsk Nickel plans to sell all it produces in 2025
Volkswagen buys 9.9% of Patriot Battery Metals for $48 million
India’s record gold import said to be due to calculation error
Iron ore posts weekly gain as investors assess fresh Beijing stimulus
Norge Mining acquires Europe’s largest natural graphite producer
Nickel price hits 4-year low as gloom offsets potential Indonesia cuts
Mercuria partners with Zambia on metals trading venture
Sibanye raises $500m via metals streaming deal with Franco-Nevada
Triple Flag to acquire royalty on Tres Quebradas lithium project
Volkswagen buys 9.9% of Patriot Battery Metals for $48 million
Aluminum price falls to one-month low in wider commodity slump
India’s record gold import said to be due to calculation error
Glencore in talks to sell Philippine copper smelting unit
Rio Tinto, BHP, and BlueScope to build ‘green iron’ plant
Arcadium Lithium investors sue miner over Rio Tinto takeover
Sibanye raises $500m via metals streaming deal with Franco-Nevada
Triple Flag to acquire royalty on Tres Quebradas lithium project
Volkswagen buys 9.9% of Patriot Battery Metals for $48 million
Aluminum price falls to one-month low in wider commodity slump
India’s record gold import said to be due to calculation error
Glencore in talks to sell Philippine copper smelting unit
Rio Tinto, BHP, and BlueScope to build ‘green iron’ plant
Arcadium Lithium investors sue miner over Rio Tinto takeover
Skeena advances Eskay Creek permitting, unlocks Orion funding
