Copper soars on interest rate reduction in China

The red metal registered a gain of 4.95%, bringing it to a price of US$ 1.69 at the London Exchange.

26 de Noviembre de 2008 | 14:41 | ValorFuturo

LONDON.- Copper closed with a significant gain of 4.95%, bringing the metal to a price of US$ 1.69734 per pound at the London Metal Exchange today after China, the world's largest consumer of the resource, lowered interest rates for the fourth time since September.

Today's result can be compared to the US$ 1.61726 price reported on Tuesday and US$ 1.68532 on Monday of this week. As a result, the monthly average moved up to US$ 1.69074 while the yearly average slipped to US$ 3.32620.

China is the fourth largest economy in the world and is the number one consumer of many basic metals.

"China is a massive metals consumer, much more so than the United States and Europe", stated Citi analyst David Thurtell. "If the United States or Europe lower rates, it is good but it is certainly not as significant as these Chinese cuts for basic metals", he stated.

At the LME, stocks decreased by 875 metric tons to 286,350. So far this year, there has been an accumulated increase of 88,900 MT (+45.02%).

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