The copper rises in price on expectations of growth of demand for metal in China and Europe

The copper rises in price on expectations of growth of demand for metal in China and Europe


According to trading, the December copper futures on the Comex rose in price up to 2,37 per pound on the back of investors ‘ expectations of growth of demand for metal in China and Europe.

MOSCOW, 28 Oct. Copper prices are rising on Wednesday on investor expectations of growth of demand for metal in China and Europe, according to AFP.

As at 18.48 GMT December futures for copper on the Comex rose in price by 0.19% to 2,37 per pound (about 0.45 kilograms).

At the end of trading Tuesday the cost of a ton of copper on the London metal exchange (LME) for delivery in three months climbed 0.56% to 5220 dollars per ton. Price per ton of aluminum fell 0.2% to $ 1476, zinc — remained at the level of 1740 dollars.

Last week the people’s Bank of China lowered the interest rate by 0.25 percentage points to 4.35%. Deposit rate thus reduced by 0.25 percentage points to 1.5%. The changes came into force from Saturday, October 24. From the same date in reserve requirements for Chinese banks reduced by 0.5 percentage point in order to maintain an acceptable level of liquidity in the banking system.

In addition, during the press conference following the meeting, ECB President Mario Draghi announced that the regulator will need to revisit its monetary policy meeting in December. He recalled that the programme of asset purchases provides sufficient flexibility to adjust its size, composition and duration.

“Stimulating the economy and low interest rates are the basis for the growth of copper prices. The General mood in the copper market certainly optimistic,” commented The Wall Street Journal the managing Director of RBC Capital Markets George jareau (George Gero).