Signs of quick global recovery supports copper and iron ore prices

Copper reaches its maximum value in almost four months

The price of copper posted a rise in the London Metal Exchange. On Wednesday, the metal saw an increase of 2.12 %.

The commodity prices have settled at $2.63129 per pound. Copper price was $ 2.57663 per pound on Tuesday and US $ 2.56688 per pound on Monday.

The rise of the prices is the fourth in a row and eighth in the last nine sessions.

For the first time since February 19, the copper prices were located on the levels it was standing before the coronavirus crises.

Besides, this is the highest value since February 17 of this year, when it was quoted at $ 2.6317 per pound.

The coronavirus crises has seriously hurt copper demand

Copper has already recovered 25.3% of its value from the low ($ 2.09446 per pound) recorded on March 23 during the crisis. On this day, the price fell to its lowest level since September 2016. The coronavirus crises have hit hard the red metal demand. Some inventories had the most significant blows from the outbreak.

Copper is widely used in industry and manufacturing, and China consumes around half of the global production. Exports from China were disrupted, so were imports. On the other hand, many copper mines had to curb their production for several months. Peru, one of the largest copper producing countries, enforced widespread quarantines. In Chile, another state that produces the metal, a state of catastrophe was declared.

Besides, the pandemic affected the construction of new projects. Several significant producers announced they were slowing or temporarily stopping development.

Despite the reopening of the Chinese economy, the industry remains weak. Also, there is a fear of the second wave of the coronavirus pandemic.

In this context, the monthly average reaches $ 2.52421 per pound, while the annual average is $ 2.47502 per pound.

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