Copper futures traded surprisingly higher on Thursday opening session amid the emerging concerns on its operations globally. The red metal shrugged off the negative sentiments and showed an impressive run both on the Commodity Exchange and the London Metal Exchange.
At the time of writing, copper settled at 5685.00 at the London Metal Exchange after opening at 5674.50. The red metal had a session high of 5687.00 and a session low of 5673.00. As seen in the chart below, copper has been having a bullish run after plunging at 5558.00 levels at the mid of the week. The candles have started crossing the upper band and moved above the 50-day SMA of 5624.49, indicating stronger momentum for the metal in the coming sessions.
Meanwhile, copper traded 1.04 percent higher to $257.80 per pound for July delivery on the Commodity Exchange as of 11:51 UTC.
Recently, the Chilean state owned copper mining company Codelco confirmed the pause of operations at its Radomiro Tomic, Chuquicamata, Ministro Hales mined due to snowstorms. According to the latest reports from the company, safety protocols were implanted, however; the processing plants continued their operations.
In the latest quarter report of Codelco, the copper output in the previous period plunged 11 percent following the decline in the ore grades. However, the soaring prices of copper supported the profit of the company. Alongside with the results, the second largest copper miner noted that the improved copper price does not allow Codelco to abandon its plans of saving and productivity.
Although the halt of operations could be a bit alarming, Codelco keeps its strategic scheme as it goes for an $18-billion investment program to revamp and expand its mines.
Elsewhere, China's copper concentrate and ore imports in May fell based on the reports showed by General Administration of Customs. The second largest economy in the world has been the world’s largest consumer of copper and the recent turmoil in China’s economic growth has served as a major turmoil in the copper industry.
The demand for the red metal could still be steady, but apparently, not from what it was a year ago. Copper is basically used in industrial and manufacturing sector, plus in the growing housing construction. Considering the current situation in China the inevitable halt of mining operations, copper will likely experience some fluctuations in the future. On the other hand, the red metal has been soaring in the latest session. The surge was probably caused by the looming market uncertainties on UK election and Trump political and economic calls. Investors are paying their attention on other precious metals, such as copper and silver, while the dollar and gold exchange indecisiveness.
1. Now, FSM News makes it easy for you to find the latest market news. FSM News also provides daily newsletter. Subscribe Now!