Copper prices have jumped to the highest level in two years following reports China could move to ban imports of scrap metal by the end of next year, a move that would likely boost demand for refined metals in the world’s top importer.
Copper prices on the London Metal Exchange hit $6,400 a tonne, a level not seen since May 2015, having risen by roughly 5 per cent over the last two sessions. Prices were also helped by weakness in the dollar, which has been boosting other dollar-priced commodities, with Brent crude oil moving back above $50 a barrel.
In China, Reuters reported that the recycling branch of the China NonFerrous Metals Industry Association said it had received a notice that imports of scrap metal including wire, motors and bulk scrap metal could be barred by the end of 2018.
Alastair Munro at Marex Spectron said: On the wires are numerous reports that China may forbid the importing of certain scrap metals from late 2018 including scrap electrical wire and cable, supporting an extra bid for copper.
Source: Reuters
