Copper soars to 7-month high on Chinese plans to cut output

LONDON Mar 13 (Reuters): Copper prices soared on Wednesday to their highest in seven months after Chinese smelters, which process half of the world's mined copper, agreed on a joint production cut.

Benchmark three-month copper on the London Metal Exchange (LME) touched $8,799 a tonne, the highest since Aug. 1, 2023. It last traded 1.6 per cent up at $8,790 as at 1055 GMT.

The rise started on the Shanghai Futures Exchange (SHFE), where copper reached a two-year high of 70,460 yuan ($9,796) per tonne.

China's biggest copper smelters met in Beijing on Wednesday agreeing on a symbolic cut in loss-making production, without specifying volumes and timing.

"It's a knee-jerk response to rush in. Interest spiked on SHFE right after the announcement of China's production cut," a trader said. "Who will admit they are the first to turn unprofitable?"