Commodity Blog

Commodity news, technical and fundamental analysis, market data on precious metals, energies, industrial metals, and soft commodities


Copper Futures Surge 3% amid China Restrictions

August 16, 2017 at 17:02 by Andrew Moran

Copper prices are soaring midweek as restrictions have been placed on refiners in China. The red metal has been bolstered by the Chinese government’s crackdown on polluters, and many experts say the industrial metal has plenty of room to advance.

September copper futures surged $0.078, or 2.71%, to $2.961 per pound at 16:44 GMT on Wednesday. Copper prices are trading at their highest levels since April 2015, and could break the $3 threshold, a price unseen since late 2014. Over the last six weeks, traders have been bullish on copper.

Year-to-date, copper has climbed by nearly 18%.

This week, China announced that it would be making cuts to the nation’s refining capacity. The reason for this is because the government has implemented new environmental policies, which do include clamping down on polluting businesses. Many Chinese metal producers have already confirmed that they have shut down millions of tons of smelting capacity.

Copper investors are still waiting for governments to announce key infrastructure spending projects. A key part of President Donald Trump’s platform was a $1 trillion infrastructure initiative over a 10-year period. Some administration officials said it would be announced this summer, but it has yet to outline any specifics.

Metals have had their best start in eight years. Because of the higher prices, Latin American mining firms have drilled more than 50 holes in the second quarter of 2017, searching for copper. Mining companies have been operating at 40%, and four of the largest copper producers in the region are extending contracts to many mining firms.

Other metals are also rallying midweek, except for the yellow metal. December gold futures tumbled $1.89, or 0.14%, to $1,277.800 per ounce. September silver futures rose $0.17, or 1.02%, to $16.88 an ounce. October platinum futures increased $5.50, or 0.57%, to $972.90 per ounce. October palladium futures jumped $15.30, or 1.73%, to $907.40 an ounce.

If you have any questions and comments on the commodities today, use the form below to reply.

Leave a Reply