Copper Price Hits High For The Third Week
COPPER price on Friday hit its third week highs on the international market stimulated by possibility of monetary policy easing in Britain and China.
Last week, Bank of England governor Mark Carney said the central bank would probably need to pump more stimulus into Britain’s economy over the summer after the shock of last week’s decision by voters to leave the European Union.
The commodity, which is Zambia’s top export, has gained over seven percent in the past three weeks.
According to Reuters , copper was trading up 0.2 percentage point at US$ 4,855 a tonne.
“ London copper was on track on Friday for a third week of gains as expectations of monetary stimulus and lower interest rates underpinned the market, although gains were capped by concerns over growth in top consumer China,” Reuters reports.
Three- month copper on the London Metal Exchange has gained over seven percent in the past three weeks Commenting on t h e development, Singapore’s United Overseas Bank analyst Alan Liew said, “ We had Brexit and there is market expectations of interest rates to remain low. It’s good for the commodities such as copper and zinc.” Meanwhile, prices in minor metal cobalt climbed 99.3 percent representing a 10 percent increase over the last week, because of supply problems combined with production cutbacks.
The highest grade of cobalt, which is 99.8 percent, rose to around US$ 15 and US$ 17 a pound versus US$ 15 and US$ 16 a pound last week. Cobalt for a battery which is 99.3 climbed to about US$ 14.50 and US$ 16.50 a pound, from US$ 14 and US$ 15 a pound.
On Zinc, prices on Friday climbed to over one- year high, rising for a fourth straight session on expectations of shortages . The price increased by 1.1 percent to trade at US$ 2,128 a tonne the highest since June, 2015.
Expectations of potential shortages have fuelled buying in zinc but an inventory overhang means the metal is readily available for consumers.