Copper hits the highest levels since Feb 2014
|- Rallies on China demand outlook.
- Weaker DXY fuels the upside.
Copper futures on Comex prolonged its rally for the fourteenth straight session and went on to hit near 4-year highs at $ 3.321 last hours, before easing to $ 3.309 levels, as of writing.
Copper: Further upside still in play?
The red metal continues to enjoy the year-end gains, with fresh signs of strengthening crude oil demand emerging from the world’s top copper importer, China.
Reuters quoted a company source with the smelter, citing that China’s leading copper smelter Tongling Nonferrous Metals Group has agreed with Freeport-McMoRan Inc for treatment and refining charges (TC/RCs) at $82.25 per tonne and 8.225 cents per pound as the 2018 benchmark.
Moreover, broad-based US dollar weakness amid falling Treasury yields and downbeat US fundamentals also helps underpin the sentiment around the USD-backed copper. A weaker US dollar makes the USD-denominated copper cheaper for the foreign buyers and vice-versa.
The recent rally in copper got fuelled after the Chinese authorities ordered its top producer, Jiangxi Copper Co, to halt output for at least a week to combat winter pollution. This came after the No. 2 smelter, Tongling Nonferrous Metals Group, was asked to make similar cuts.
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