Copper’s Rally Is Longest in a Generation

• December 28 2017

Copper’s on course for the longest run of gains in almost three decades, topping $7,300 a metric ton in London, as optimism about increased demand, supply disruptions in China and a weaker dollar helped to lift prices toward the end of a year when metals have set the pace in commodities.

Copper’s on course for the longest run of gains in almost three decades, topping $7,300 a metric ton in London, as optimism about increased demand, supply disruptions in China and a weaker dollar helped to lift prices toward the end of a year when metals have set the pace in commodities.

Three-month copper rose as much as 1 percent to $7,312.50 on the London Metal Exchange, the highest since January 2014, and traded at $7,283 at 8:40 a.m. in London. The metal’s up for a 10th straight day, heading for the longest winning streak since 1989, according to data compiled by Bloomberg. Other metals also rallied, with aluminum hitting $2,275 a ton, the most since 2012.

Base metals have posted the biggest returns among raw materials in 2017, with copper, aluminum, zinc and nickel leading gains on the Bloomberg Commodity Index. The advances have been fueled by an improving global demand outlook coupled with supply disruptions, including plant halts in China as officials press home a battle against pollution. On Thursday, further support came from a weaker U.S. currency as the dollar fell for a second day.

“Dollar weakness, funds returning after the Christmas break are extending the metals rally, adding fuel to bullish sentiment,” Xu Maili, an analyst at Everbright Futures Co., said by phone from Shanghai. The LMEX Index, which tracks the six main metals, posted a ninth gain on Wednesday.

Metals news:

• Red-Hot Copper Poised for Eighth Straight Quarterly Gain: Chart
• China’s Tongling Agrees on Lower Copper Processing Fees for 2018
• Commodities Lure Investors for Third Year as Growth Accelerates

— With assistance by Winnie Zhu