Copper's appeal remains low

Copper prices remain within their three-month range, apparently unmoved by Chinese government growth claims.

As yet the metal’s market has not felt unduly influenced by the comments from the Chinese authorities, stating that they will keep 7.5% as the low-end of acceptability for the country’s growth over the next 12 months. So far, the copper price has drifted up to the top side of a range it has found itself in over the last three months, from $32 down to $30. If the markets had been a little bit more believing of China’s claims, we would probably have seen a charge back up to the March $36 highs. However, trading could be described as lackadaisical at best.

This morning saw UK post-construction PMI figures that were miles ahead of expectations. Before 9.30am they were called at 51.6, but came in at 57. If either the US or China were to post figures even half as bullish as these, we would expect to see the underlying copper price move. But as yet there has been nothing to suggest that this will be the case.

High-grade copper chart

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