- Write by:
-
Sunday, September 11, 2022 - 10:12:40
-
381 Visit
-
Print
Mining News Pro - Copper spreads are spiking in a signal that physical supplies remain tight despite global economic headwinds.
According to Mining News Pro - The premium for cash copper over three-month futures on the London Metal Exchange rose by as much as 91% on Thursday to a high of $145 per ton, an indication the market is paying more for units right now. That's the biggest backwardation since November last year.
Funds have historically bought and sold copper futures as a proxy for global growth, and the metal has declined 20% this year on fears over a recession. Still, the underlying physical market is robust, with Chinese copper imports ticking higher, while top producer Chile said exports were at a 19-month low. Copper climbed as much as 2.4% on the LME, the most in almost five weeks.
"It doesn't feel to me that anyone wants to be caught short on a price rally because the physical market is actually very strong," Michael Widmer, head of metals research at Bank of America Corp., said by phone. "Europe is spending as much as possible on grids and renewables to become energy independent from Russia and China's doing the same for de-carbonization reasons."
Chinese imports of copper are up 8.1% in the year to August, according to customs data. That's coming against the trend for other commodities, with crude oil and iron ore purchases posting significant drops year on year.
Meanwhile, iron ore futures bounced back to $100 a ton as a major Chinese city ordered work to restart on unfinished property projects, fueling hopes for a wider reboot of construction activity. Aluminum also rose amid continued supply risks while lead tracked lower.
Zhengzhou, a provincial capital of some 10 million people, said all stalled housing projects should resume by Oct. 6, according to official media. The city urged developers to raise funds by selling other assets, and said the government will take over projects run by builders with liquidity difficulties.
Short Link:
https://www.miningnews.ir/En/News/622152
Copper futures in New York rallied to a record high after a short squeeze that’s prompted a scramble to divert metal in ...
A Native American group said on Tuesday it will take its fight against Rio Tinto’s proposed Arizona copper mine to the ...
Teck Resources Ltd expects to generate annual earnings before interest, depreciation, tax and amortization (EBITDA) of ...
The state-run Chilean Copper Commission (Cochilco) will soon revise its copper price outlook, which will be considerably ...
Chilean mining giant Codelco is still working to meet its estimated output for the second quarter, CEO Ruben Alvarado ...
Truck drivers in Chile staged protests Monday in the mineral-rich north of the country and around the capital Santiago, ...
Democratic Republic of Congo’s government has lifted a suspension order on a Congolese copper and cobalt operation ...
Peru’s copper production came in essentially flat for March at about 219,000 metric tons, government data showed on ...
Oxford Economics Australia has released data showing mine maintenance spending may be hitting its peak. But what does it ...
No comments have been posted yet ...