By BUUMBA CHIMBULU
THE copper price has topped US$10, 000 amid a global energy crisis that is knocking supply offline and heaping pressure on fabricators scrambling for metal.
The copper price continued to rally on Thursday amid a global energy crisis that is knocking supply offline and heaping pressure on fabricators scrambling for metal.
Copper for delivery in December rose sharply for a second day in a row on the Comex market in New York, touching US$10,200 per tonne, the highest since the beginning of June.
According to Mining.Com, copper climbed as much as 3.6 percent to US$9,994 a tonne in London. It stated that the cash-to-three-month spread was trading at the biggest gap since 2012, as global exchange inventories plummet.
“Five out of the six base-metal contracts on the London Metal Exchange are now in backwardation (prompt delivery metal pricier than futures), signalling broad pressure on spot supply.
“The rally fed through to producers, with shares in BHP Group up 3.8 percent, Glencore plc up 3.3 percent, Freeport-McMoRan up 5.2 percent, KGHM up 4.8 percent and Southern Copper up 4.4 percent. First Quantum Minerals rose more than six percent on the day.
“Metal supply cuts are spreading from China to Europe, as energy shortages drive up costs for electricity and natural gas, threatening more inflationary pressure from rising commodity prices,” Mining.Com indicated.
On Wednesday, the world’s second largest zinc producer, Nyrstar, said it will cut output at three European smelters by up to 50 percent, making the metal price surge to its highest price since 2007.
The rebound in copper prices also comes despite concerns surrounding China and its debt-addled property sector.
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