Tuesday , August 9 2022

Copper reaches July's highlights last year and will continue to rise


Good news continues for the financial books. Of course, because the price of copper, the main export product of the country, continues to a bullish barrier and today at a maximum in more than eight months.

In London and London places, the red metal was quoted at US $ 2.88 per pound, which represents a strong strongness of 1.68% compared to yesterday's wax and its level highest since July 2018.

The rise of the copper and most of the industrial metals rose to the expectations related to trade negations between China and the US, with the intention to expire to & Tariff war #.

This same confidence was reflected in the rise in the world's top stock index, including the IPSA.

For more commercial optimism, copper reserves were added before the expected increase in demand in China.

The demand in China for the red metal usually rises during April-June before the increase in the construction activity in the third quarter.

According to Cochilco data, copper reserves at the London Metal Interchange were about 180,000 tonnes in the beginning of November and today stands at 139,500 MT, close to the minimum of 122,500 tonnes of 10 years. Those who fell in December last year, Reuters reported.

The figure represents a fraction of global demand, estimated at around 24 million tonnes. Nearly half of the use is made by China and the government is expected to announce stimuli for the economy.

"Copper stocks have not accumulated as much as they would have to wait so far this winter, which suggests that it is the lower base to go in the second quarter," said Citi analyst Oliver Nugent. , i & n agency.

Currently, the cost of a tonne of copper is US $ 6,351.50 and Citi expects to reach US $ 6,700 over the next six months.

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