Fed Statements, Chinese GDP Data Help Copper Turn Around

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Copper steadied on Tuesday as optimism about demand for industrial metals from top consumer China and dovish comments from the U.S. Federal Reserve offset selling by some traders who cashed in following recent gains.

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Investors are less worried about a growth slowdown in top copper consumer China, putting their faith in Chinese government promises to keep growth steady.

Analysts polled by Reuters expect Chinese GDP data due out on Wednesday will show the economy steadied in the second quarter with annual growth holding firm at 7.4 percent, suggesting a recovery is taking hold.

The 3-month price of copper saw the biggest increase at 0.7 percent on the LME, finishing at $7,140 per metric ton for Monday, July 14. At $7,150, the primary copper cash price finished the market day on the LME up 0.6 percent per metric ton.

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The cash price of primary Japanese copper gained 0.4 percent to finish at JPY 758,000 ($7,478) per metric ton. The price of US copper producer grade 122 saw little movement on Monday, closing out around $3.95 per pound. The price of US copper producer grade 102 saw little price change yesterday at $4.14 per pound. The price of US copper producer grade 110 saw little movement yesterday at $3.95 per pound.

Chinese copper prices were mixed for the day. Chinese copper bar prices rose 0.2 percent to CNY 52,550 ($8,470) per metric ton. The Chinese copper cash price increased 0.2 percent to CNY 52,750 ($8,502) per metric ton. The price of Chinese copper wire remained essentially flat at CNY 51,270 ($8,263) per metric ton. The price of Chinese bright copper scrap held steady at CNY 44,300 ($7,140) per metric ton.

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