LME copper set for its best quarter in a decade
London copper prices on Tuesday were on track for their best quarter in a decade, on optimism about a recovery in China's demand, massive global stimulus and tight supplies.
Three-month copper on the London Metal Exchange (LME) rose 0.8 per cent to $6,006.50 a tonne by 0428 GMT, up 21 per cent on a quarterly basis, its best since the quarter ended September 2010.
The most-traded August copper contract on the Shanghai Futures Exchange (ShFE) advanced 0.8 per cent to 48,720 yuan ($6,894.40) a tonne and was up 25.1 per cent so far this quarter, its best since the last quarter of 2009.
Copper prices have been supported by hopes of stimulus, low inventories and a weaker US dollar, making green-back denominated metals cheaper for buyers using other currencies.
"As long as you see inventories stay low or dwindling, prices will go up," said a metals trader based in Singapore, adding that Commodity Trading Advisor funds were buying automatically at the $6,006 price level.
Factory activity in top copper consumer China quickened faster in June, beating expectations, while the total new orders index also brightened, suggesting that domestic demand is picking up.
However, export orders continued to contract in June and factories cut jobs for the second time since they reopened, indicating that the Covid-19 crisis will drag on growth for some time. - Reuters