Copper price rose on Wednesday, one day after China’s National Food & Strategic Reserves Administration announced that it intended to sell 20,000 tonnes of copper in an initial batch of sales of state metal reserves.
The release of state metal reserves in China, the world’s biggest metals consumer, is one of a number of attempts by Beijing to cool a stellar rally in commodity prices that has squeezed manufacturers’ margins.
Copper for delivery in July rose 2.6% from Tuesday’s settlement price, touching $4.342 per pound ($9,552 per tonne) midday Wednesday on the Comex market in New York.
According to Citigroup, Beijing’s measures “target managing expectations and deterring speculators rather than solving supply/demand imbalances.”
Demand for copper is rising for use in renewable energy projects and electric vehicles.
ⓒ MINING.COM Staff Writer | June 23, 2021 | 9:48 am Intelligence Markets China Copper
