The value of copper futures on metals exchanges has escalated in early January, with the Wall Street Journal noting that copper has approached an 18-month high as of Weds., Jan. 6.
The news report cited “investor demand, economic optimism and weather-related buying” as having countered any bearish sentiment rising from high-volume inventories and two major production disputes being resolved in Chile.
On the Comex division of the New York Mercantile Exchange, one copper futures contract price was up to $3.52 per pound, according to the Wall Street Journal.
An analyst quoted in the article said that large investment funds are moving back into the copper market with shorter-term speculators joining them.
Market fundamentals that may be attracting the investments include reported manufacturing expansion in China, North America and the United Kingdom as well as winter weather conditions (including in China) that are limiting the supply of copper scrap.
Copper buyers in China are reportedly also favoring overseas markets because Shanghai Futures Exchange prices are considerably higher than Comex and London Metal Exchange (LME) prices.
The price increases are occurring despite inventories of copper stored in LME and Comex warehouses continuing to rise, according to the Wall Street Journal.
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