Aluminum price soars as China cancels tax incentive on exports
Futures in London jumped as much as 8.5%.
The copper price rose on Tuesday after the central bank of China lowered a short-term lending rate for the first time in 10 months to prop up its post-pandemic recovery.
Copper for delivery in July was up 2.93% on the Comex market in New York, touching $3.86 per pound ($8,492 per tonne).
Click here for an interactive chart of copper prices.
“The industrial metals sector trades higher after the surprise rate cut from China’s PBOC, raising speculation that a larger economic support package could be unveiled soon, perhaps this week,” said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.
Copper trades above the 200-day moving average of $8,384 but needs a break above $8,450, its March and April lows, to attract additional momentum buying, Hansen said, adding that large is unlikely until the CPI and Fed rate decision arrives.
As of Monday, copper inventory across major Chinese markets stood at 98,400 mt, down 11,000 mt from last Friday and down 17,300 mt from the same period last year.
(With files from Reuters)
