Copper Rising From 30-Day Low on Hopes of Chinese Stimulus

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Copper futures rose the most in 19 months on speculation that economic stimulus will boost demand in China, the world’s top user of industrial metals.

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Prospects for monetary easing in China increased after data showed this month that manufacturing contracted. Equities in the country snapped the longest slump since November.

“Any stimulus out of China should be bullish and very supportive to the market,” Adam Klopfenstein, a senior market strategist at Archer Financial Services in Chicago told Bloomberg News. “Even if stimulus doesn’t work, the original action would be to buy copper in that type of environment.”

The copper cash price rose 2.0% on Monday, February 2, making it the day’s biggest mover. After two days of falling prices on the LME, it closed at $5,500 per metric ton. After hitting a 30-day low of $5,460 per metric ton on Thursday, January 29, the copper 3-month price rose 1.7% on Monday on the LME.

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The price of US copper producer grade 122 rose 1.6% on Monday, just off the 30-day low of $3.24 per pound it hit on Thursday, January 29. Just off of a 30-day low of $3.24 per pound, the price of US copper producer grade 110 rose 1.6% yesterday. The price of US copper producer grade 102 rose 1.5% on Monday, just off the 30-day low of $3.43 per pound it hit on Thursday, January 29. The cash price of primary Japanese copper saw a 1.2% decline to JPY 669,000 ($5,708) per metric ton.

Chinese copper prices were mixed for the day. After hitting a 30-day low of CNY 40,460 ($6,474) per metric ton on Thursday, January 29, the price of Chinese copper wire rose 1.3% on Monday. Just off of a 30-day low of CNY 41,200 ($6,593) per metric ton, the price of Chinese copper bar rose 1.2% on Monday. After hitting a 30-day low of CNY 41,400 ($6,625) per metric ton on Thursday, January 29, the Chinese copper cash price rose 1.2% on Monday. Chinese bright copper scrap stayed flat at around CNY 33,600 ($5,376) per metric ton.

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