China has been cracking down on heavy pollution levels and has taken on a more hands-on approach to large polluters, especially during the winter months when heating is still reliant on coal.
The supply disruptions have bolstered copper prices just as the outlook for demand rises on a strengthening global economy and potential new avenues of demand, such as electric vehicles.
Looking ahead, Chile’s Codelco, the world’s largest producer, projected prices could test records above $10,000 while UBS Group AG’s wealth management unit predicted even more gains.
“The China shutdown news is certainly propping up copper further than it would be potentially without it,” David Meger, a director of metals trading at High Ridge Futures, told Bloomberg. “All of that is tied into this whole thread of optimism in U.S. and global growth.”
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