A resurgence in COVID-19 cases in China isn’t stopping copper prices. China is the top consumer of copper globally, but it is facing factory shutdowns across the country.
“A copper fabricator in Henan that produces pipes and parts used in household appliances and medical devices said its sales were down 20% to 30% in tonnage terms in the first half of April from a year earlier,” Mining.com reports. “Many customers are at a standstill due to restrictions, said an official at the company, who asked not to be identified because of internal rules.”
“In southwest China, Yunnan Tin Co., the country’s largest producer of the metal, said it had halted production at its mining unit to comply with local government virus restrictions,” the report adds further. “The disruption was expected to be short-term, the company said in an exchange filing.”
According to Statista., China accounts for over 50% of the total global copper consumption volume. As such, China’s consumption presents a major data point when looking to play strength or weakness in copper prices.
It appears thus far that traders are erring on the side of bullishness still when it comes to copper prices. This also hints at optimism that China’s current COVID problem will only be temporary and won’t affect copper demand to a great degree.
“Copper for delivery in May rose 2.5% from Friday’s settlement price, touching $4.842 per pound ($10,652 per tonne),” Mining.com says.
Play the Rise in Copper Prices
Rather than trading the actual commodity itself, investors looking to bank off rising copper prices can also look at an indirect play through miners. One way is to look at exchange traded funds (ETFs) like the Global X Copper Miners ETF (COPX ).
COPX seeks to provide investment results that correspond generally to the price and yield performance of the Solactive Global Copper Miners Total Return Index, which is designed to measure the broad-based equity market performance of global companies involved in the copper mining industry.
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