Copper the metal used to manufacture bullets and electric wires rallied to a 6 week high crossing the $6,000 metric ton on news of US and China resuming trade talks on the sidelines of the G20 summit. London Copper is trading 1.4% higher at $6,095 a metric ton after being suppressed for 3 weeks below the $6,000 mark after disappointing economic data from China and the United States weighed prospects of aggregate demand. Donald Trump and Xi Jinping agreed to resume trade talks with Trump commuting to no additional tariffs and a softer staff on Huwawei.
Copper is used as a bell weather indicator of global pulse and has been supported by the 2 weeks Coldelco Chile strike which capped the Chiquicamata Mines output by 50% shorting copper supply globally, Glencores Mopani smelter underwent service at its Mufulira mine, the safety conundrum issue which saw the death toll at KOVA copper & cobalt mine to 43 from illegal artisanal miners. Other developments in the copper industry includes the Konkola Copper Mines (KCM) liquidation case in Africa’s copper producer where the Zambian High Court reversed an initial court order blocking the liquidator from disposing KCMs assets or engaging its creditors.
The International Copper Study Group – ICSG in its 2019 May report forecast a copper deficit in 2019 June high is projected to give support to the red metal.
Complied by Kondwani Phiri