Copper in Shanghai has rallied nearly 3% today, on hopes the Chinese government will launch renewed stimulus in the face of weaker industrial growth.
The most active April copper contract on the Shanghai Futures Exchange rose 2.8% to 40,290 yuan a ton, reports Henry Sanderson.
China’s Purchasing Managers’ Index, an indicator of industrial manufacturing, fell to 49.8 last month from 50.1 in December, data released Sunday showed. That was the first time since September 2012 that it had dropped below 50, according to ANZ.
On Friday, January 30, the cash price of primary copper fell by 1.7% on the LME, landing at $5,390 per metric ton and making it the day’s biggest mover. The 3-month price of copper fell to a 30-day low at $5,368 per metric ton after shifting 1.6%.
US copper producer grade 122 saw its price drop 1.5% to a 30-day low of $3.19 per pound last Friday. The price of US copper producer grade 110 fell 1.5% to a 30-day low of $3.19 per pound last Friday. The price of US copper producer grade 102 reached a 30-day low after decreasing 1.5% to $3.38 per pound. At JPY 677,000 ($5,725), the cash price of primary Japanese copper finished the market day up 1.0% per metric ton.
Chinese copper prices were mixed for the day. After falling 0.6% to CNY 40,720 ($6,520) per metric ton, the price of Chinese copper bar reached a 30-day low. Chinese primary cash copper saw its price drop 0.6% to a 30-day low of CNY 40,920 ($6,552) per metric ton last Friday. The price of Chinese copper wire fell to a 30-day low at CNY 39,960 ($6,398) per metric ton after shifting 0.5%. The price of Chinese bright copper scrap remained steady at CNY 33,600 ($5,380) per metric ton.