Copper price nears five-month high as China moves to boost consumption

Copper prices traded near a five-month high on Monday after the Chinese government vowed to revive consumption.Chinese authorities unveiled a special action plan over the weekend aimed at boosting spending by increasing people’s incomes.Consumption in the country grew faster at the start of the year, helping offset the impact of U.S. President Donald Trump’s tariffs, which are putting pressure on Chinese exporters. Retail sales increased by 4% in the first two months, exceeding forecasts.However, demand from China’s property sector, a pillar of metals demand, has yet to bottom out. Chinese new-home prices fell at a quicker pace last month.On Monday morning, copper for May delivery was trading 1% higher at $4.95 per pound ($9,900 per tonne) on the Comex market in New York.Copper prices have risen around 12% this year after President Donald Trump signed an executive order initiating a Section 232 review of copper imports. These investigations assess the impact of imports on national security.In addition, the copper market is grappling with a mine supply shortfall.Last week, top supplier Codelco warned that production this quarter will be similar to or slightly below year-ago levels due to maintenance work at its El Teniente underground operation in central Chile.The country, the world’s largest copper producer, saw its output decline by 24% month-over-month in January, marking a nine-month low.Citigroup said it expects LME copper to hit $10,000 per tonne in the next three months as the global market remains tight.Morgan Stanley also anticipates further gains in copper prices amid expectations of potential U.S. tariffs.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com