Copper Prices Expected to Rise Amid Strong Demand and Tight Supplies

Strategic Insights -

Copper prices are anticipated to surge on the Comex division of the New York Mercantile Exchange, following a significant increase in copper imports in China. As a result, copper futures are expected to open 9 cents a pound higher on Monday. This growth can be attributed to a 13.86% increase in copper imports during March, reaching a total of 374,957 metric tons. Furthermore, inventories on the Shanghai Futures Exchange have fallen, with a 4,142 metric ton decline to 18,766. The rise in copper demand has also been fueled by a rally in equities, leading to a 7.25 cent increase in May copper futures to $2.0710.

Key Takeaways:

  • Copper imports in China increased by 13.86% in March, reaching 374,957 metric tons.
  • The Shanghai Futures Exchange reported a 4,142 metric ton decline in inventories to 18,766.
  • May copper futures rose by 7.25 cents to $2.0710 on the Comex division of the New York Mercantile Exchange.
  • Strong demand and tight supplies have fueled a surge in copper prices.
  • Equities rallied, which led to a rise in copper demand and an increase in prices.

Statistics:

  • 374,957 metric tons: Total copper imports in China during March.
  • 13.86%: Increase in copper imports during March compared to the previous month.
  • 4,142 metric tons: Decline in Shanghai Futures Exchange inventories.
  • 18,766: Remaining inventories on the Shanghai Futures Exchange.
  • 7.25 cents: Increase in May copper futures to $2.0710 on the Comex division of the New York Mercantile Exchange.

Sources:

  • Dow Jones Commodities News via Comtex (Apr. 13, 2009)
  • Commodity News Services (including Dow Jones Newswires)
  • Shanghai Futures Exchange