Beijing Acts to Strengthen Chinese Economy, Copper Rises to 11-Month High

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Copper prices rose today as investors weighed the prospects of further stimulus from the government of China, the world’s largest copper consumer. The most actively traded contract, for July delivery, was recently up 1.25 cents, or 0.4%, at $3.1800 a pound on the Comex division of the New York Mercantile Exchange.

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Copper had touched an 11-week high on Friday, and extended its gains on Tuesday, as investors continued to mull signals from the Chinese government that it would enact measures to support the economy should growth slow too much. Copper futures traded as high as $3.1925 a pound, their highest level since March 7, the Wall Street Journal reported.

On Friday, Chinese Premier Li Keqiang said the country’s economy remains under stress and that governments at all levels should fast-track development.

Following a two-day decline, the cash price of Japanese copper climbed up 1.4 percent to end at JPY 737,000 ($7,228) per metric ton on Monday, May 26. The price of US copper producer grade 110 inched up 0.5 percent to $3.87 per pound. The price of US copper producer grade 122 rose 0.5 percent to $3.87 per pound. The price of US copper producer grade 102 increased 0.5 percent to $4.06 per pound.

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Chinese copper closed mixed last Friday. The price of Chinese copper wire finished the day at CNY 50,620 ($8,117) per metric ton following a 1.3 percent increase. The price of Chinese copper bar increased 1.3 percent to CNY 51,480 ($8,255) per metric ton. The Chinese copper cash price rose by 1.3 percent to CNY 51,680 ($8,287) last Friday after remaining flat for two days. The price of Chinese bright copper scrap was unchanged at CNY 44,300 ($7,103) per metric ton.

After a 0.7 percent increase, the 3-month price of copper finished the day on the LME at $6,918 per metric ton. At $6,990, the cash price of primary copper finished the market day on the LME up 0.6 percent per metric ton.

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