Copper's Two Year High on China Import Data
All eyes in the commodity markets are still on the dollar today, following on from the release of the Federal Open Market Committee (FOMC) minutes yesterday, which has continued to fuel speculation that further quantitative easing will be forthcoming when they next meet in early November. With this weakness in the greenback, USD denominated commodities are trading higher across the board today, with copper touching a 2-year high on the London Metal Exchange (LME), boosted further following strong Chinese import data overnight. Despite the data showing a slight dip in copper and copper product imports month-on-month, down 2.9%, the 368.4 thousand tonne figure is still seen as very strong in the base metals market, allowing copper to rally and soon having the rest of the metals complex following suit. In an interview with the London Financial Times (FT) today, Diego Hernández, CEO of the world’s largest copper miner Codelco, said he expects supply to continue to tighten mainly because there are only a few new projects where production will be starting. He also suggests that due to rising costs and lower ore quality, a copper price of around $6,500 a tonne will be required on average, in order for it to be economically viable to exploit new deposits and operate mines in the long term.Complete Story »
- Original article
- Login or register to post comments
