Copper futures rise as China aims to strengthen economy

Confidence about economy-spurring measures in the world's largest consumer prompted copper futures to increase in value on Tuesday as the reddish metal touched its top value since the middle of March, according to Bloomberg.

Amid concerns about the pace of growth in China, also host of the globe's second-largest economy, the government is poised to manipulate policy as part of a drive to spur economic development. Premier Li Keqiang said late last week that the government will take steps to reverse recent losses that the Chinese economy has endured during the recent past. But questions are in play as to how strong those efforts will be.

The Asian nation will continue moving forward with mini-stimulus measures, according to a report authored by UBS AG and cited by the news source. Market News International said economic indicators in China will climb this month.

"'Premier Li' comments suggesting potential need to support credit growth are helping copper today," states a Tuesday report authored by analyst Aneek Haq with Exane Ltd. in London, according to the news outlet. "But how aggressive the Chinese government is willing to be in terms of monetary policy is still unclear."

At 8:23 a.m. on Tuesday, copper futures edged up 0.09 percent, a 0.003-cent rise to $3.1705 per pound.

Copper gauges global health
The base metal is sensitive to domestic and worldwide economic and financial developments due to its myriad uses in manufacturing, construction and additional industry. China consumes an estimated 40 percent of the globe's supply of copper, thus activity by the Asian nation also directly impacts the industrial metal's performance.

The U.S., host of the world's largest economy, also is the globe's second-largest user of the industrial metal. The price of copper is likely to be impacted by economic data noting durable goods orders dropped 0.7 percent last month, according to a Bloomberg-administered poll of economists. That data is slated to be released later during the Tuesday trade session.

The London Metal Exchange said supplies of the reddish metal climbed 0.4 percent to amount to 176,550 tons after having endured 23 consecutive losses. Supplies have sank 52 percent thus far this year.

"The copper market is buttressed by tighter supply and improving demand," Barclays Plc analysts wrote in a report.

Stronger production forecast for 2015
Next year will see stronger production of copper as compared to this year, The Australian reports OZ Minerals said.

In 2015, the miner is forecast to generate 105,000 tons of copper, which comes after forecasts state it will product as many as 80,000 tons this year. Chairman Neil Hamilton with the company said the miner would upgrade production while addressing the annual meeting.

He said recent efforts to enhance productivity and cut costs have generating strong results.

China aims to cash in during second half of 2014
Reuters reports China is looking forward to the second half of this year for an increased amount of profit when it comes to purchases of copper.

Sellers of copper concentrate are remitting payments for treatment and refining to smelters as a method of converting raw material into refined metal, the news source reports.

Charges are deducted from the smelters' sale price and those charges that the consumer needs to pay either rise or fall with the concentrate supply or demand, depending on the market circumstances.

In April, expenses and charges pushed to $110 per ton plus 11 cents per pound, consequences of the country's third-largest copper producer Jinchuan Group pushing higher as far a concentrate supplies are concerned.

Smelters in China are foreseeing Indonesia to continue concentrate exports during the third quarter of this year, which comes after the country closed exports in January.