Copper Prices Jump on Strong Chinese Economic Data
July 25 2017 - 7:09AM
Dow Jones News
By Justin Yang
Copper prices touched a five-month high Tuesday amid signs of
stronger Chinese demand and lingering supply-side concerns.
The base metal jumped 2.21% to $6,167 a metric ton Tuesday.
Gold, meanwhile, fell 0.31% to $1,250.50 a troy ounce.
The International Monetary Fund revised its growth outlook for
China, the world's largest copper consumer, up 0.1 percentage point
to 6.7% late Monday.
"Economists have raised China GDP forecasts, that's been
steadily positive for sentiment and helps support prices, that's
one of the key drivers," said Warren Patterson, commodities
strategist at ING Bank.
The economic data came after China released figures on its
copper imports earlier Monday, which increased in June
month-on-month.
The recent Chinese data is, "the underlying big picture support,
which has been simmering in the background," said Robin Bhar, head
of metals research at Société Générale.
On the supply side, Antofagasta PLC and Barrick Gold Corp.'s
Zaldívar mine averted a strike overnight, but threats to supply
still exist. Freeport McMoRan Inc.'s Grasberg mine in Indonesia,
the second-largest copper mine in the world, entered its fourth
month of strikes Monday, which helps further boost the base metal,
Mr. Patterson said.
Gold prices were muted ahead of the U.S. Federal Reserve's
decision on interest rates Wednesday, where no changes are
expected. A firmer dollar also pushed down on the precious
metal.
The WSJ Dollar index, which compares the dollar against a basket
of currencies, ticked 0.07% higher to 86.57. A stronger dollar
makes dollar-denominated metals more expensive for holders of other
currencies.
"It's really just been a factor of the dollar," Mr. Patterson
said about gold prices.
Among precious metals, palladium rose 0.95% to $857.15 a troy
ounce, platinum fell 0.38% to $928.80 a troy ounce and silver
dropped 0.99% to $16.28 a troy ounce.
Among base metals, zinc rose 1.52% to $2,830.50 a metric ton,
aluminum was up 0.52% to $1,922.50 a metric ton, tin fell 0.02% to
$20,245 a metric ton, nickel jumped 1.84% to $9,940 a metric ton
and lead gained 1.79% to $2,298 a metric ton.
Write to Justin Yang at justin.yang@wsj.com
(END) Dow Jones Newswires
July 25, 2017 06:54 ET (10:54 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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