Copper Surges On Supply Cuts, Easing China fears

Base Metal Copper - Copper futures soared by over 2.5 per cent in the domestic market on Friday as investors and speculators booked fresh positions in the industrial metal as investors and speculators cheered the announcements from leading copper producers who said that they would cut output as demand eases in China, the world’s biggest copper consumer. 

Freeport McMoRan Inc., the world’s biggest listed copper mining company has said that it will reduce copper supply by 350 million pounds; a bigger cut than the previously announced 250 million pounds.
 

Further, China’s lending data topped estimates as credit growth picked up in November, easing fears over an economic slowdown in the world’s biggest metals consuming nation, brightening the demand outlook for copper. New local currency loans issued by China’s banks and financial institutions came in at 709 billion Yuan in November, up from October’s 15-month low of 513.6 billion Yuan.
 

Copper may extend gains today as China’s industrial output, retail sales and fixed-asset investment numbers for November, came in better-than-expected, bolstering outlook.
 

At the MCX, Copper futures for February 2016 contract closed at Rs 318.75 per kg, up by 2.69 per cent after opening at Rs 310.7, against the previous closing price of Rs 310.4. It touched the intra-day high of Rs 321.65.