Copper futures strengthened to approximately $4.45 per pound on Thursday, approaching two-month highs. This rise is attributed to rorts suggesting that China, the world's largest consumer of copper, is poised to implement additional stimulus measures to bolster its economy. Sources indicate that Beijing is considering injecting as much as 1 trillion yuan into major state banks to enhance economic activity.
Earlier this week, China announced a series of economic support measures, including a planned cut to the reserve requirement ratio by 50 basis points before year-end. Additionally, reductions in the seven-day reverse ro rate, medium-term lending facility, and loan prime rates were also revealed. These actions come on the heels of the U.S. Federal Reserve commencing its easing strategy with a significant 50 basis point rate cut earlier this month, which has positively influenced the global economic outlook.
Since the start of 2024, copper prices have increased by 0.69 USD/LB, or 17.86%, as indicated by trading on a contract for difference (CFD) tracking the benchmark market for this commodity. Analysts project that copper will trade at 4.22 USD/LB by the end of the current quarter, with expectations of reaching 4.44 USD/LB in the next twelve months.