The copper price rose on Tuesday after data revealed faster than expected economic growth in China.
Chinese GDP grew by 4.5% year on year in the first three months of 2023, beating analyst expectations of 4% growth.
Copper for delivery in May on the Comex market in New York touched $4.10 per pound ($9,020 per tonne), up 1% compared to Monday’s closing.
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But while consumption, services and infrastructure spending perked up, factory output has lagged.
Order levels at Chinese fabricators have fallen in recent weeks, said Dan Smith, head of research at Amalgamated Metal Trading.
“We’re going to have slightly softer demand for the remainder of April and possibly May,” he said, predicting prices could fall towards $8,800.
Meanwhile, top producer Peru saw its copper exports fall 20% in the first two months of the year as production climbed, leaving miners with mounting inventory and contributing to tight global supplies.
The world’s no. 2 copper producer is recovering from its worst social unrest in decades, which triggered consecutive economic contractions in January and February.
Meanwhile, copper production rose by 5% in the same period.
(With files from Reuters)