This morning in metals news, copper hits a two-year high, economic signals in July for China were a bit of a mixed bag and the London Metal Exchange continues a balancing act between tradition and change.
Copper Reaches Highest Point in 2 Years
It’s been a big year for copper.
Copper reached a two-year peak on Monday, partially a result of solid manufacturing data in China, Reuters reported.
LME copper reached $6,431 per ton, its highest since May 2015.
Construction Up in China
Speaking of China, July saw a dip in factory growth but a surge in construction, Reuters reported.
China’s Purchasing Managers’ Index (PMI) remained above 50, however, as the Chinese government spent money on construction, fueling demand for building materials.
The Chinese steel industry, for example, had its strongest month of growth since April 2016.
Changing Times at the LME
Matthew Chamberlain became the boss of the world-famous London Metal Exchange at age 34.
A lot has changed for the LME, which was founded in 1877.
The exchange was sold to HKEX in 2012, and is currently engaging in efforts to bring back volumes, The Guardian reports.
The so-called “ring” where LME traders do their work is governed by a set of long-standing rules, like the prohibition on chewing gum. According to the report, Chamberlain says those rules aren’t likely to change.
However, he also acknowledges that the LME needs to be prepared to deal with changing demands — for instance, for cobalt and lithium to be used in electric car batteries.