Copper price approaches record on US-China trade uncertainty

[Ben Graham]

Copper prices rose to a near record on Monday as investors continue to assess the direction of US-China trade talks as well as Beijing’s outlook for the world’s top consumer.

In London, the metal traded as high as $10,691.50 a tonne for a 1.5% intraday gain. Earlier this month, it had surged to a record $10,866.40 per tonne as global mine disruptions raised alarms over supply.

On the Comex, copper futures jumped 1.6% to $5.0485 per lb., equivalent to $11,130 per tonne.

Click on chart for live prices.

The moves follow earlier comments from US President Donald Trump that he may impose tariffs on “many other things” should talks with his Chinese counterpart Xi Jinping not bear any fruit. The sides are due to meet later this month ahead of the Nov. 1 deadline.

Separately, fresh data from China released on Monday painted a mixed picture of the economy, though the country’s National Bureau of Statistics said a full-year target of about 5% economic growth was still on track.

The metals industry is coming out of what proved to be a relatively bullish gathering of merchants, producers and buyers at LME Week in London last week. Major global traders are enjoying their most profitable year ever, as a series of mine disruptions and supply dislocations drove prices toward record levels.

(With files from Bloomberg)