CORRECTED-METALS-China growth propels copper prices to 9-month high

By Kitco News / April 17, 2019 / www.kitco.com / Article Link

(corrects to make clear price closed up in para 4)
* GRAPHIC-2019 asset returns:
* China data boosts metals sentimentBy Zandi ShabalalaLONDON, April 17 (Reuters) - Copper prices hit a nine-monthhigh on Wednesday as firmer-than-expected economic growthfigures from China boosted expectations for higher demand in theworld's top metals consumer.China's economy grew at a 6.4 percent pace in the firstquarter from a year earlier, defying expectations for a furtherslowdown, as industrial production jumped sharply and consumerdemand showed signs of improvement. "The data is confirmation that there are clear tailwinds toChinese growth into the second quarter and mid-year," saidDeutsche Bank metal strategist Nick Snowdon.Benchmark copper touched its highest since July 3 at$6,608.50 per tonne before finishing up 0.9 percent at $6,556.


China, which is in the midst of a trade conflict with theUnited States, ramped up fiscal stimulus this year to supportthe world's second largest economy after a slew of disappointingdata pointed to a potential slowdown.But some analysts warned it may be too early to say the GDPdata was a sign of a full turnaround in the Chinese economy anda break from narrow trading ranges for metals.


"Whilst potentially the first quarter represents a keyturning point for the balance of 2019, as to whether it presentsa panacea to the mean reversion/range trading so evident in ourspace seems unlikely," said Alastair Munro at broker MarexSpectron.


OUTPUT: China's crude steel output grew 10 percent in Marchcompared with the same month a year ago as mills ramped upoperations amid a profit margin recovery and less stringentcurbs on production in the country's anti-smog crackdown. DATA: China's aluminium production fell 3.6 percent on adaily basis in March from the previous two months to its lowestrate since October, pressured by winter curbs on industry andlow prices. This pushed Shanghai aluminium up as high as 13,995yuan ($2,092.59) a tonne, its highest intra-day level sinceDecember.LME ALUMINIUM: LME aluminium inched down 0.3 percentto $1,850 per tonne.AUSTRALIA RAILWAY: A railway that carries zinc from majorproducers such as Glencore , MMG Ltd and South32 across Australia's Outback is expected to reopenthis month after it was damaged in floods. COLUMN: Zinc is coming under sustained attack from bearishfunds. The trigger for the assault was Tuesday morning's LondonMetal Exchange (LME) stocks report, showing 10,625 tonnes ofinflow into exchange warehouses. PRICES: Zinc climbed 0.4 percent to $2,819.50 pertonne, lead gained 1.4 percent to $1,946 while tin was down 0.5 percent at $20,405 per tonne.Nickel did not trade in closing rings, nor werethere any bids or offers. In electronic trading, prices weredown 0.7 percent at $12,865 a tonne at 1624 GMT.<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Additional reporting by Mai Nguyen, editing by Louise Heavens,Emelia Sithole-Matarise and Ken Ferris)

zandi.shabalala.thomsonreuters.com@reuters.net))

LME price overview COMEX copper futures Base metals news All metals news All commodities news Metals diary Foreign exchange rates SPEED GUIDES)) Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Recent News

Gold stocks outperform equity market gains

October 06, 2025 / www.canadianminingreport.com

Most major producers rise but TSXV gold mixed

October 06, 2025 / www.canadianminingreport.com

Platinum, palladium, copper gain on green China, supply constraints

September 29, 2025 / www.canadianminingreport.com

Gold stocks continue to soar as markets stumble

September 29, 2025 / www.canadianminingreport.com

Gold stocks again reach new highs

September 22, 2025 / www.canadianminingreport.com
See all >
Share to Youtube Share to Facebook Facebook Share to Linkedin Share to Twitter Twitter Share to Tiktok