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Copper Retreats From Seven-Month High After USMCA, US-China Trade Deals

Summary:
Copper futures are trading at their best levels in seven months, but they have taken a bit of a breather to finish the trading week. The red metal’s ascent has been buoyed by the latest developments in the USMCA and the US-China trade agreements. But analysts are warning that the industrial metal could take a slight dive as producers begin to sell their inventories amid higher prices. March copper futures tumbled %excerpt%.01, or 0.36%, to .7865 per pound at 13:43 GMT on Friday on the Comex division of the New York Mercantile Exchange. Copper prices are on track for a weekly gain of 1.5%, lifting their year-to-date gains to 5.5%. This is the biggest weekly surge since February. Industrial metal investors are bullish on the advancements of the new North American Free Trade Agreement (NAFTA)

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Copper futures are trading at their best levels in seven months, but they have taken a bit of a breather to finish the trading week. The red metal’s ascent has been buoyed by the latest developments in the USMCA and the US-China trade agreements. But analysts are warning that the industrial metal could take a slight dive as producers begin to sell their inventories amid higher prices.

March copper futures tumbled $0.01, or 0.36%, to $2.7865 per pound at 13:43 GMT on Friday on the Comex division of the New York Mercantile Exchange. Copper prices are on track for a weekly gain of 1.5%, lifting their year-to-date gains to 5.5%. This is the biggest weekly surge since February.

Industrial metal investors are bullish on the advancements of the new North American Free Trade Agreement (NAFTA) and the US and China agreeing in principle to phase one of a comprehensive trade deal.

On Thursday, the House Democrats announced that they have agreed to the USMCA and will hold a vote in Congress next week. The Mexican Senate later ratified the deal. On Friday, the White House proposed not moving ahead with the December 15 deadline that would have consisted of 15% duties on the remaining roughly $160 billion in Chinese imports. The deal also cuts the existing tariffs on about $360 billion in half. China is expected to hold a press conference on late Friday to outline its support for phase one.

These developments are expected to provide some certainty in the global economy and stabilize international commerce. The USMCA and the US-China first phase might reverse the global downward trends that have been pervasive over the last year or so.

Industry observers are warning that red metal prices could slip over the coming days as producers attempt to offload their supplies to take advantage of the multi-month highs. But with supply deficits expected over the next 18 to 24 months could investors be in store for a price range of $3 to $4 in 2020?

In other metal markets, February gold futures rose $4.80, or 0.325%, to $1,477.10 per ounce. March silver futures added $0.055, or 0.31%, to $16.951 an ounce. February platinum futures fell $5.90, or 0.62%, to $938.90 per ounce. February palladium futures soared $33.90, or 1.77%, to $1,948.10 an ounce.

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


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Andrew Moran
I am a full-time professional writer. Prior to my self-employment, I worked as a reporter for Digital Journal covering the politics beat and The Toronto Times reporting on the city’s entertainment scene. I currently write mostly about business, marketing and finance

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