China Is Driving Copper Prices To A 4-Month High

Copper futures are up nearly 3 per cent today, to its highest level since mid-May, after rising 1.7 per cent on Wednesday.

This comes after China announced that it approved over 847 billion yuan of rail and road construction projects over the past two days.

China is the world’s largest consumer of copper. After recent data showed a deepening economic slowdown, the latest infrastructure stimulus helped drive copper prices since the metal is used in construction and power cables, according to Reuters. Copper prices were also boosted by hopes of more QE3 and the ECB’s efforts to preserve the euro.

This chart shows a clear jump first on September 5, and then September 6:

copper futures chart

Photo: Fin viz

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