BEIJING- Copper prices in Shanghai climbed to a two-week peak on Wednesday, underpinned by better demand outlook following top consumer China’s decision to roll out fresh stimulus measures to support the economy.
The most-traded December copper contract on the Shanghai Futures Exchange rose 1.1 percent to 66,900 yuan ($9,149.34)per metric ton, the highest since Oct. 10.
Three-month copper on the London Metal Exchange held its ground at $8,057 per ton, at a two-week high.
China’s top parliament approved a 1 trillion yuan bond issue, the state media reported, adding that the funds would be spent rebuilding disaster zones and improving infrastructure.
The boost in fiscal stimulus demonstrated the top leadership’s commitment to boosting economic growth even as the 5 percent full-year GDP growth target is almost guaranteed, analysts said.
Market confidence was also boosted in October by strong demand for copper, the metal used for construction, power and transportation sectors, and as a price drop in recent weeks further prompted buying, according to the Shanghai Metals Market (SMM).
Operation rates among refined copper rod producers hit a two-year high at 85.5 percent last week, an SMM survey showed.
