The iPath Series B Bloomberg Copper Subindex Total Return ETN (NYSEArca: JJC), an exchange traded note (ETN) offering commodities investors exposure to copper, jumped 1.59% on Tuesday as the red metal’s prices continue soaring.
Falling copper inventories and a rebounding Chinese economy are driving near-term upside for the widely followed industrial metal.
“Copper prices rallied on Tuesday on the back of falling inventories, unprecedented Chinese economic stimulus and ongoing worries about pandemic-hit supply from top producer South America,” reports Frik Els for Mining.com. “Copper for delivery in September trading in New York changed hands for $2.9815 a pound ($6,573a tonne) in afternoon trade, up 2.8% from Monday’s settlement.”
Calling on Copper
Crimped supply could support prices for awhile. Some analysts are growing concerned that global troubles could drag down the industrial metal as well. Along with the trade concerns, copper prices were weakening on softening global economic data. The base metal is a significant component in many industries, including construction, and is widely seen as a barometer for global economic health
“Copper prices have also been lifted by top consumer China, where unprecedented stimulus measures have increased demand for the metal widely used construction, transportation, industry, and electrical grids,” according to Mining.com. “Since the outbreak of the pandemic, Beijing has issued 4.75 trillion yuan ($683 billion) in local and national debt with a focus on encouraging infrastructure projects according to China Dialogue.”
However, dueling views of the industrial metal remain in place. Some analysts are growing concerned that global troubles could drag down the industrial metal as well. Along with the trade concerns, copper prices were weakening on softening global economic data. The base metal is a significant component in many industries, including construction, and is widely seen as a barometer for global economic health.
Some analysts are growing concerned that global troubles could drag down the industrial metal as well. Along with the trade concerns, copper prices were weakening on softening global economic data. The base metal is a significant component in many industries, including construction, and is widely seen as a barometer for global economic health.
“Customs data released last week showed China’s unwrought copper imports (anodes and cathodes) in July rose a stunning 81% from the same month last year to 762,211 tonnes and a full 16% above the previous monthly record set in June,” according to Mining.com.
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