The Copper prices yesterday went up backed by better-than-expected Chinese growth and hopes of further monetary policy easing by the American Federal Reserve.
According to Reuters, the positive factors outweighed fears of spreading debt contagion across Europe and the possibility of more tightening measures by Beijing for now.
The prices for the three-month copper on the London Metal Exchange (LME) rose 0.7 per cent to US$9,720 a tonne while the most-active September copper contract on the Shanghai Futures Exchange jumped nearly 1.9 per cent to 72,460 Yuan per tonne.
China’s economy grew by 9.5 per cent in the second quarter from a year ago, not far from the 9.7 per cent expansion in the first three months of the year.
The data lifted Asian equities and other risk assets, despite nagging worries of a global slowdown at a time euro zone debt worries are also deterring investors.
Equally supportive of the base metals, was the belief by some Federal Reserve officials that further monetary policy easing could be needed if the recovery remains too sluggish to cut the stubbornly high America’s
jobless rate.
This raised hopes of a continued loose monetary policy that is supportive of commodities and pared the dollar’s strength from a four-month high reached in the previous session.
China’s June refined copper and copper concentrate outputs rose to 8.7 per cent and 12.7 per cent from May, respectively.
Coupled with a rebound in June copper imports and reported declines in Chinese bonded and ShFE warehouses data pointed to a steady demand for
the metal, traders said.
On a more pessimistic note, Moody’s cut Ireland’s credit rating to junk, warning that the debt-laden country was likely to need a second bailout, heightening fears of debt contagion in Europe.
[Times of Zambia]
Umukuba wesu wakwela umutengo lelo abale nonkelamofye ni ba mwisa epela!!
Good new for Mother Zambia, lets continue to embark on development so the ones with eyes will continue to see while the blind PF will continue to feel. VIVA RB, VIVA MMD
WAKE UP…my guy, this is bigger than your cheapa$$ PF Vs MMD Politics…whilst you monkeys are fighting the bazungus reaping the rewards of your ignorance!!LOOOL!
Whats up LT, not showing my posts??
@2 Jojo You are a very funny man. It is good news for the shareholders of the mining companies. Your mother Zambia will get nothing from the abuse she is gullibly suffering! Copper prices can go up but the mining companies will simply ‘increase’ their production costs. Glencore will get all the Zambian copper and ‘sell’ it to Glencore at ‘half’ the going price. All mother Zambia will reman with is a statistic that shows that Switzerland is mother Zambia’s biggest trading partner for the simple reason that the trader of your Copper is Swiss based Glencore. Your mother Zambia is being raped!
Add this as well ….And Zambia Revenue Agency( ZRA) will only tax that copper that is sold at half price hence only getting half the tax…Glencore will then sell it on open market at the lucrative market price and make their killing $$$$$$£££££
But the country is not benefiting from the escarating copper prices. The agreements signed with the mine owners are flawed and the country is loosing out. The investors are sending their money back to their countries for investment. I’m told even the chinese labourers when they get their salaries at the monthend they just keep a small amount for food, beer and women and remit the rest to their families in China. Ife ni ndwiiii socabe!!!!!! Just insulting each other.
The Copper price can even soar by 50%, the guys benefiting will be those western investors in Ivory towers in their tax haven HQs in Zurich, this is because our leaders like Ka Chiluba and MMD were putting themselves first before Zambians when they were negotiating most of these contracts.
Brazil and Venezuela will benefit greatly as they have signed contracts that are beneficial to both parties, as for Zambia (and DRC) we will get peanuts (****o)..and chi Buffoon RB will here floursing about how they GDP has increased..it really disgusting!!!!
#1 Uwakwisano, i gree with 100%! MMD’s flawed policies are a laughing stock throughout the world, all because our sleeping dull president!
It dosent a make a difference because the people enjoying the benefits of good copper prices are foreigners, state house and afew ministers who are given pocket money directly by the investors. If only we could have a framework that tap good taxes from the profits the it would make sense. Right now the news is just noise.
# 2 Jojo (JM). It is just good news to the investors. Tell us how it is good for our country. The last time l checked the boss for Glencore is now the richest man in SA but just look at the places were they have investment in Zambia, they are alike villages. So just find some other ways of supporting your MMD conmen.
This should excite the Chinese and not Zambians!
Not really as the Chinese are buyers for their resource hungry nation..so high prices are not good news for them although money is not a problem for them!!
# 2 Jojo (JM).This is so laughable that its not funny take a look at Glencore website it says “Glencore is a leading integrated commodities producer and marketer. We produce, source, process, refine, transport, store, finance and supply commodities needed by industries around the world.”
In other words they are able to mine through their subsidiary mines on CB, then sell to themselves at discount for ZRA to tax the peanuts, hog the copper for a period in their warehouses, when the market picks like now, sell on open market.. its Christmas come early!!
#12 Maxwell that’s right, Christmas come early several times a year
everything that goes up must come down again i hope the government is ready this time round
Does Zambia still have copper? Whose copper is it anyway?
What God is the Copper if Zambians are just producers of the raw materials instead of producing finished goods.I