Copper Approaches 5-Month High
Copper futures rose to $3.9 per pound, hovering close to levels last seen in June amid worries of incoming shortages and expectations that industrial demand will rise in top consumer China.
Lower supply in South America continued to drive concerns of shortages in the near future, as output from top producer Chile slid 6.7% in the first three quarters of the year and mine protests in Peru hamper production.
Commodity trader Trafigura warned that global copper stocks have fallen to record lows with current inventories enough to supply world consumption for just 4.9 days, and mining giant Glencore estimates a supply shortfall of 50 million tonnes in 2023.
Eased covid restrictions in China also supported prices by raising hopes of improved demand.
Also, the PBoC cut its reserve ratio by 25bps to stimulate industrial activity and combat increasing signs of a slowing economy.