Copper prices rose to a six-week high as an interest-rate cut bolstered demand prospects in China, the world’s biggest user of the industrial metal.
China’s central bank on Saturday reduced the benchmark-lending and deposit rates by a quarter percentage point. The nation is taking steps against deflationary pressures before a gathering of the legislature where the Communist leadership typically unveils its goals for the year. In February, copper jumped 7.3%, the most since September 2012.
The copper 3-month price saw a 2.2% increase on Friday, February 27, reaching $5,912 per metric ton on the LME and making it the biggest mover for the day. Also on the LME, the cash price of primary copper rose 2.2% to $5,935 per metric ton.
The price of US copper producer grade 122 rose 0.3% to $3.43 per pound. After a 0.3% increase, the price of US copper producer grade 110 finished the day at $3.43 per pound. The cash price of primary Japanese copper gained 0.3% to finish at JPY 714,000 ($5,981) per metric ton. The price of US copper producer grade 102 inched up 0.3% to $3.62 per pound.
Chinese copper closed mixed last Friday. After a few days of little change, the price of Chinese copper wire jumped 1.8%, landing at CNY 42,640 ($6,816) per metric ton. On the tail of a three-day flat streak, the price of Chinese copper bar rose by 1.6%, settling at CNY 43,500 ($6,953) per metric ton. The cash price of Chinese copper increased 1.6% to CNY 43,700 ($6,985) per metric ton. The price of Chinese bright copper scrap saw little movement at CNY 33,400 ($5,339) per metric ton.