United Kingdom – Copper has finally advanced again on the London Metal Exchange as a rebounding US economy signalled stronger demand from the world’s second-largest user of the metal, Bloomberg has reported. Three-month copper gained 0.6% earlier this week to average US$ 7125 a tonne, or US$ 3.23 a pound.
US gross domestic product climbed at a 4% annualised rate last quarter after shrinking 2.1% in the January-March period, government figures reveal. More than half of the increase was due to consumers spending more on luxury products such as new vehicles.
′Copper could get a boost on that type of news,′ notes Phil Streible, a senior market strategist at RJO Futures in Chicago. ′Improving economic conditions should boost demand for all base metals.′
This view was echoed by Tom Buechel of Rockaway Recycling: ′Scrap metal buyers are becoming very aggressive and willing to spend more to get used materials to sell to refineries.′ Rising demand during the summertime construction boom is hailed as another driver.
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