Copper prices surge
By BUUMBA CHIMBULU
COPPER prices have remained elevated amid speculation that a wave of demand from new energy sector will leave buyers short.
The elevation has remained after prices for the red metal soared to all-time highs in May this year.
Copper’s surge to record levels this year is spurring buyers in a key consumer market to mull cheaper alternatives, in an early sign of how high prices might destroy demand, according to Absa Bank Zambia.
London Metal Exchange (LME) copper increased 1.2 percent to US$9,499 a tonne.
Copper soared to all-time highs in May and remains elevated amid speculation that a wave of demand from new energy sectors will leave buyers short and push prices much higher in coming years.
And Zanaco bank indicated that LME copper increased 0.9 percent to US$9,469.50 a tonne while LME tin advanced 0.6 percent to US$33,500 a tonne.
“China’s major copper smelters lifted August refined cathode output by 2.7 percent from the prior month, encouraged by higher treatment charges and rising prices for by product sulphuric acid,” the bank stated.
Meanwhile, Mining.Com stated that the surge in commodities, as well as soaring shipping and power costs, was fuelling global consumer prices.
It indicated that China’s factory-gate inflation accelerated to a 13-year high, while US consumer prices are forecast to rise by more than five percent for a third straight month.
“A broad rally in base metals markets is gathering pace, with tight supply, logistical logjams and booming demand creating an inflationary storm that’s driving prices to multiyear highs.
“With aluminum prices surging 43 percent this year, the lightweight metal’s cost-competitiveness against copper is fading fast,” according to Mining.Com.