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?"
Copper soars to 7-month high on Chinese plans to cut output
FE Team | Published: March 13, 2024 23:26:09
Copper soars to 7-month high on Chinese plans to cut output
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