• 1 day Chinese Stocks Rebound After Regulatory Scare
  • 3 days Apple Stocks Falls After Blowout Earnings Report
  • 3 days The 5 Biggest IPO Disasters Of 2021
  • 4 days Crypto-Based ‘Shadow Financial Market’ Spooks Regulators
  • 7 days Ireland Balks At Biden’s Global Tax Plan
  • 10 days Robinhood To Trade On Nasdaq Targeting $32B Valuation
  • 14 days Facial Recognition Is Watching You
  • 15 days Biden’s $3.5T ‘Human Infrastructure’ Workaround
  • 15 days The Fed’s $3 Trillion Headache
  • 18 days Why Bitcoin Could Struggle To Recover After Epic Crash
  • 18 days Wells Fargo Back In The Spotlight Over Personal Loan Cancellations
  • 19 days Delta Variant Real Threat To Economic Recovery
  • 22 days JEDI Drama Continues With Microsoft Contract Cut
  • 24 days DiDi Shares Take a Beating From Chinese Regulators
  • 25 days Thousands Of Companies Hit In Latest Ransomware Attack
  • 25 days Jobs Report Has Big Numbers, But Still Big Problems
  • 26 days Robinhood’s ‘Mission’ Questioned in $70M Fine
  • 29 days Didi Just Went Public, And Uber Is Loving It
  • 30 days Islamic Finance On Track To Hit $3.7 Trillion
  • 31 days The Lumber Bubble Is Bursting
Why Chinese Rare Earth Prices Are Soaring

Why Chinese Rare Earth Prices Are Soaring

The prices of Chinese-sourced rare…

Chinese Panic Buying Could Fuel A Copper Rally

Chinese Panic Buying Could Fuel A Copper Rally

Copper was once again approaching…

Mining.com

Mining.com

Mining.com

MINING.com is a web-based global mining publication focusing on news and commentary about mining and mineral exploration. The site is a one-stop-shop for mining industry…

Contact Author

  1. Home
  2. Commodities
  3. Industrial Metals

China's $700 Billion Infrastructure Package Sends Copper Soaring

Copper

Copper advanced to 12-week high on Thursday as China’s $700 billion stimulus program focussed on so-called “new infrastructure” and “new urbanization” kicked into gear.

Copper trading in New York jumped to $2.5025 a pound ($5,515 a tonne) in lunchtime trade, bringing the bellwether metal’s gains since its mid-March low to just under 27%.

BMO Capital Markets, in a research note points out that data from China’s Ministry of Finance show the value of special purpose bonds issued – destined for local government spending on infrastructure – has already surpassed the full-year total in 2019.

BMO says “new urbanization” refers to refurbishing old urban housing stock, railways, airports, and upgrades to power grids and local utilities while “new infrastructure” includes 5G networks (base stations are already being constructed at a clip of 10,000 a week), ultra-high voltage power grids, EV charging stations, and data centers.

Needless to say, all of these investments need massive amounts of copper. 

China already consumes more than half the world’s copper and its refineries are sucking in concentrate at higher rates than the record setting 2019 total of 22m tonnes.  Related: Bitcoin Fails To Stay Above $10,000

Now the country is going into overdrive. 

The latest SMM survey of copper wire and cable fabricators shows a rise in operating rates in May to 101.7%, the highest level in the history of this survey, BMO says. 

That’s mainly thanks to purchases from the world’s no 1 buyer of copper – China’s State Grid – after Beijing massively inflated its budget. At the same time copper stocks held in the bonded zone are now below 250,000 tonnes for the first time in the past seven years.

By Mining.com

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment