Copper prices are rising, again approaching multi-year highs reached in mid-September, amid data that indicate an accelerating economic recovery in China.
The most actively traded December copper futures contract rose 1.3% during Wednesday's trading to $ 3.028 a pound, close to $ 3.116 reached on September 18.
Prices are up about 8% YTD and have recovered about 40% in the past six months after selling off at the start of the year. Copper prices plummeted after the Chinese economy closed at the onset of the COVID-19 crisis, but the rebound in economic activity in the country helped boost quotes.
China accounts for about half of the global demand for copper, which makes the country's manufacturing sector the main driver of growth in metal prices, writes The Wall Street Journal.
The purchasing managers' index (PMI) in China's processing industry in September 2020 rose to 51.5 points, the highest level since March, up from 51 points a month earlier, according to the State Statistical Office (GSO).