Commodity News
HeadLine : China Copper Outlook Brightens With Miners Likely to Shine Most
Date : Jan 2 2020
Chinese copper stocks are returning to favor as the outlook for demand brightens, with a late spurt delivering the best annual gain in half a decade for the largest, Jiangxi Copper Co. The benchmark London price, a barometer for the broader economy because of the metal’s wide usage in construction and power transmission, ended last week with a sixth consecutive gain, its best run in over two years. China’s manufacturing purchasing managers index, meanwhile, showed a second straight month of expansion in December. The prospects for miners that dig up ore could be healthier than for the smelters refining the metal, which are burdened by overcapacity and weak margins While the smelting industry has signaled it will cut output this year to rescue treatment fees that have sunk to near seven-year lows, it’s the producers of the raw material that may be best placed to benefit from resurgent demand.

Source : Bloomberg
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