By Jim Williams
The price of copper soared Monday to heights not seen in three years. The price per pound of the red metal jumped 8.5 cents, or around 2.7%, to almost $3.22 a pound in early morning trading. This, after topping out at $3.23 a little earlier – that's the highest since August of 2014!
We normally talk price per pound in this space. Today, the investment market is trending $7,000 – as in the price for a ton of copper zoomed past the $7,000 level to $7,177. Again, a place copper has not been since 2014.
London copper slipped a little this morning as the dollar flexed its muscle, but optimism over China's economic outlook has copper investors' spirits high in advance of the country's twice-a-decade National Party Congress – which starts tomorrow.
According to a report by the Standard Chartered, copper could find more support if the National Party Congress unveils polices that extend the country's industry reform to protect the environment. “Any signaling by policy makers that the rigorous application of environmental regulations on industry and seasonal pollution-reducing policies will be the norm over the next five years will be a price-positive development for the complex.”
Back to the Buck
The stronger dollar came thanks to a rise in Treasury yields following news that President Donald Trump was favoring a policy hawk as the next head of the Federal Reserve. Reports out this morning say current Fed Chair Janet Yellen is scheduled for a formal interview to stay in her role after her term expires in February. Click here to check out the Seeking Alpha article on the importance of President Trump's pick to sit in the chair.
More From China
Reuter's reports China's copper imports have picked up despite reports that China's economic growth is expected to drop to 6.8 percent in the third quarter from 6.9 percent in the previous quarter.
Scrap That – China ban in 2018?
China may ban traders from importing scrap copper from the start of next year as the world's top metals user deepens its crackdown on imports of foreign waste and cuts pollution from heavy industries. Read more here.
Tagged with China, copper, President Trump, tED