Copper Prices Rise as China’s Central Bank Addresses Debt Risks and Low Stocks Provide Support

Copper prices experienced a upswing, open at 729.80, propelled by a boost in sentiment due to China’s central bank’s commitment to addressing local government debt risks.

[{"selector":"#anim-1790b18e-08d7-4d80-a23f-f27f9e8b37bd","keyframes":{"transform":["translate3d(115.54054%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-230d1ac2-3254-450d-8c8a-3d4919fc308b","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-44527011-87b0-43cb-b0ab-049e6b06a8c4","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}]

China’s central bank issued a statement urging collaboration among financial departments to effectively tackle local debt risks.

[{"selector":"#anim-a66c3875-6469-4e55-8dff-c452fdd2b2f9","keyframes":{"transform":["translate3d(115.54054%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-fea54724-327f-4d01-ad95-77679128a7c6","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-3ca75420-4900-4b9b-824b-179e8f7ce89f","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}]

Last Friday, copper stocks on the Shanghai Futures Exchange (SHFE) experienced a notable decline of 25.9%, reaching 39,228 tons—the lowest recorded since September 2022.

[{"selector":"#anim-7cf9176c-402f-4a42-ac55-c24011858add","keyframes":{"transform":["translate3d(115.54054%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-5f9da045-469b-457a-80c1-a51b047b636e","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-9d3d1dd3-8b97-4542-8c42-f3dc2a4b948c","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}]

The combined inventory of the Shanghai Futures Exchange and Chinese bonded warehouses stood at 110,314 metric tonnes on August 11, reflecting a year-on-year decrease of 53%.

[{"selector":"#anim-6acadfad-00a8-45e5-980e-687c76846c5a","keyframes":{"transform":["translate3d(115.54054%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-eda0f494-cafa-496f-83af-5d9a7099638c","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-68002e4f-7f72-47f6-a529-49464a8e8c20","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}]

Copper’s recent price movement, driven by China’s central bank initiatives and inventory dynamics. Highlights the intricate interplay of factors shaping the market.

[{"selector":"#anim-aa419646-cf03-408b-b279-f066f788033c","keyframes":{"transform":["translate3d(115.54054%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f7acdb14-2600-4d5a-ad32-3116208d26fe","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d19b1a8e-5454-4900-a659-d44e27af1bbb","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}]