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Copper Touches Two-Year High as Demand Exceeds Supply

Summary:
Copper futures are touching their best levels in two years as demand continues to exceed supply. In the aftermath of the coronavirus pandemic, many major markets have renewed their appetite for the industrial metal as part of their economic recovery efforts. The industrial metal is now trading at its best level in more than two years. September copper futures rose %excerpt%.031, or 1.02%, to .0705 per pound at 16:08 GMT on Monday on the New York Mercantile Exchange. Copper prices have risen to their highest levels since Jun 2018. The red metal is coming off a weekly dip of about 0.1%, but they are up nearly 10% year-to-date. Many indicators are driving the copper rally to kick off the trading week. Inventories at London Metal Exchange-approved warehouses have fallen to their lowest levels since

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Copper futures are touching their best levels in two years as demand continues to exceed supply. In the aftermath of the coronavirus pandemic, many major markets have renewed their appetite for the industrial metal as part of their economic recovery efforts. The industrial metal is now trading at its best level in more than two years.

September copper futures rose $0.031, or 1.02%, to $3.0705 per pound at 16:08 GMT on Monday on the New York Mercantile Exchange. Copper prices have risen to their highest levels since Jun 2018. The red metal is coming off a weekly dip of about 0.1%, but they are up nearly 10% year-to-date.

Many indicators are driving the copper rally to kick off the trading week.

Inventories at London Metal Exchange-approved warehouses have fallen to their lowest levels since 2005. Industry observers warn that LME stocks could slide even further because large holdings of warrants and canceled warrants represent more than 50% of the total.

Traders added to their positions in copper after new data found that Chinese banks extended more new loans in August, while broad credit growth advanced. All eyes will be on industrial production, manufacturing output, and urban investment figures on Tuesday. China has been ramping up its purchases of copper as it continues to bring the world’s second-largest economy to pre-pandemic levels. As a result, the country is trying to restock their shelves with copper.

A slumping greenback contributed to copper’s gains to start the trading week. The US Dollar Index, which gauges the greenback against a basket of currencies, tumbled 0.37% to 92.99. The index is down 3.5% year-to-date. A weaker buck is good for commodities priced in dollars because it makes it cheaper for foreign investors to purchase.

In other industry developments, it was reported that growing copper consumption is being fueled by rising battery demand. This has prompted Peru and Chile to boost metal production.

In other metal markets, December gold futures surged $19.90, or 1.026%, to $1,967.80 per ounce. October silver futures rallied $0.563, or 2.1%, to $27.42 per ounce. October platinum futures jumped $22.60, or 2.41%, to $962.20 an ounce. October palladium futures picked up $18.20, or 0.78%, to $2,349.00 per ounce.

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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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