Victory trump has led to record growth in copper prices

On the London metal exchange (LME) copper price in the course of trading on 11 November reached us $6,025 thousand per tonne, up from the opening of 7.6%, according to Bloomberg. The Agency notes that this is the biggest jump in copper futures per trading day in 2009.

The weekly increase in copper prices in London exceeds 19%, the largest result since 1986 (Bloomberg data on the price of the metal starts from this year). The record will be set if the copper at the end of Friday’s trading will cost at least $5,715 thousand per ton, which is practically guaranteed.

The current record week of growth in copper prices by 14.4% — was recorded in October 2011, follows from the data Bloomberg terminal.

Copper shows a record growth and on the new York Mercantile exchange, according to Bloomberg terminals over the week prices rose nearly 20%, which is the largest figure is at least 28 years. On the Shanghai futures exchange is also experiencing growth. Accordingly, the stock prices of the largest copper producers (Rio Tinto, Anglo American, Glencore, Antofagasta) during the week also increased significantly.

As he noted in his research note, Citigroup, the rapid growth in copper prices reflects investors ‘ expectations that US President-elect Donald trump will increase public investment in infrastructure.

According to Financial Times, since the beginning of 2000-ies almost all of the increase in demand for copper fell on China.

Industrial metals except for copper rising prices for zinc and Nickel. Commerzbank analysts noted that metals prices supported the “euphoria of market participants from winning trump,” and called the response “strange” because the market fundamentals have not changed. Analysts at Citigroup expect the price correction to the end of the year.

During the election campaign, trump promised to send to infrastructure investment “at least twice” than his rival Hillary Clinton (she said about $275 billion). During the decade of infrastructure investment could amount to $1 trillion, said trump. Funds will be used, in particular, for the construction and repair of bridges and roads.

Copper takes the first place on volume of trading among non-precious metals, and quotes copper futures, often seen by investors as a barometer of the state of the world economy.