The price of copper soared on Thursday morning, reaching a four-month high of $7,675 per ton on the London Metal Exchange, reported the Financial Times. That’s the red metal’s highest level since April 2010, when it reached $8,000 per ton.
Manufacturing growth has been a strong driver of copper prices – the metal is extremely important in circuits and wiring as a result of the proliferation of electronic components in many types of consumer and industrial goods.
Both the U.S. and China saw manufacturing bounce in August, with a U.S. purchasing managers’ index rising from 55.5 to 56.3. A similar index focused on China and compiled by the bank HSBC saw a rise from 49.4 in July to 51.9 in August.
“Discussions with producers continue to suggest that the physical market remains very tight for many metals, particularly copper,” Ric Deverell, a commodities analyst at Credit Suisse, told the Financial Times. “Indeed, judging by base metals’ price changes over the past week of trading, investors may already have jumped on to this bandwagon.”
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