Copper Price Surges after China Releases Guidance on Nonferrous Metal Development, SMM Reports

SHANGHAI, Jun. 16 (SMM) – On Jun. 15, LME nickel soared by over 3 per cent. What are factors behind the surge? 

In addition to softer dollar after US’s no rate change decision, the issuing of guidance on healthy development of nonferrous metal sector by China’s State Council also supported the higher copper price, Shanghai Metals Market explained. 

US No Rate Change Decision Cheers Base Metals, SMM Says

The guidance aims to tackle the long-existing problem of structural overcapacity, resolve supply-demand imbalance and other deep-rooted issues, and promote the healthy and sustainable development of the sector. 

The guidance mainly involves five parts, namely to strictly control new capacity, to speed up elimination of inefficient capacity, to enhance technological innovation, to expand market applications, and to improve stockpiling system.

“LME copper tumbled with rising inventories on the bourse, and falling inventories this week also give price incentive as earlier declines were seen overdone,” SMM copper analyst added.     

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