{"id":1175200,"date":"2020-03-31T15:36:51","date_gmt":"2020-03-31T21:36:51","guid":{"rendered":"https:\/\/www.mining.com\/?p=1018818"},"modified":"2020-03-31T15:36:51","modified_gmt":"2020-03-31T21:36:51","slug":"copper-price-in-last-ditch-rally","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1175200","title":{"rendered":"Copper price in last ditch rally"},"content":{"rendered":"<p>Copper bounced on Tuesday after a rebound in Chinese manufacturing activity, but analysts cautioned that the market is far from returning to normal levels.<\/p>\n<div class='d-flex justify-content-center d-xs-block d-sm-block d-md-none'>\n<div id='div-gpt-ad-1561499308230-0'><script>googletag.cmd.push(function() {googletag.display('div-gpt-ad-1561499308230-0');});<\/script><\/div>\n<\/div>\n<p>Copper trading in New York rose by more than 4% to $2.248 a pound ($4,955 a tonne) on course to contain its first quarter losses to below 20%. Two weeks ago the bellwether metal briefly traded below $2.00, levels last seen during the global financial crisis.<\/p>\n<p>The official manufacturing PMI increased from a record low of 35.7 in February to 52.0 in March according to China&#8217;s National Bureau of Statistics This jump was driven by a rise in the output and new orders components with readings above 50 indicating expansion.<\/p>\n<div class=\"wp-block-image\">\n<figure class=\"alignright\"><img decoding=\"async\" src=\"https:\/\/www.mining.com\/wp-content\/uploads\/2020\/03\/capital-economics-copper-price-rebound.jpg\" alt=\"\" class=\"wp-image-1018849\" srcset=\"https:\/\/www.mining.com\/wp-content\/uploads\/2020\/03\/capital-economics-copper-price-rebound.jpg 427w, https:\/\/www.mining.com\/wp-content\/uploads\/2020\/03\/capital-economics-copper-price-rebound-300x213.jpg 300w\" sizes=\"(max-width: 427px) 100vw, 427px\" \/><\/figure>\n<\/div>\n<p>Capital Economics <a rel=\"noreferrer noopener\" aria-label=\"in a note (opens in a new tab)\" href=\"https:\/\/www.capitaleconomics.com\/publications\/?_product=146\" >in a note<\/a> points out that this does not mean that output is now back to its pre-virus trend but &#8220;simply suggests that economic activity improved modestly relative to February\u2019s dismal showing, but remains well below pre-virus levels&#8221;: <\/p>\n<p>The London-HQed research firm predict the price of copper will fall further in the second quarter, reaching a trough of around $4,000 per tonne ($1.80 a pound): <\/p>\n<blockquote class=\"wp-block-quote\">\n<p>If anything, we suspect that the risks to this forecast are to the downside.\u00a0<\/p>\n<\/blockquote>\n<blockquote class=\"wp-block-quote\">\n<p>Thereafter, if we are right in assuming a steady relaxation of virus containment measures, the price of copper should start to rise again from the second half of 2020. <\/p>\n<\/blockquote>\n<p>China is responsible for more than 50% of the world&#8217;s copper consumption and after rapid expansion in recent years now also produces the bulk of the world&#8217;s refined copper.<\/p>\n<h2>Slipping supply<\/h2>\n<p>Top miners rallied on Tuesday in response to the stronger copper price led by  Freeport-McMoRan up 8% and Anglo American with a 7.5% jump in New York. Glencore, which said it&#8217;s <a rel=\"noreferrer noopener\" aria-label=\"delaying a dividend decision (opens in a new tab)\" href=\"https:\/\/www.mining.com\/glencore-postpones-dividend-payment-decision-due-to-covid-19-related-risks\/\" >delaying a dividend decision<\/a>, gained  more than 4% in London.  <\/p>\n<p>Today&#8217;s rally won&#8217;t help much for the sector&#8217;s performance this quarter with <a href=\"https:\/\/www.mining.com\/web\/global-copper-miners-head-for-worst-quarter-since-2008\/\">Bloomberg reporting <\/a>that listed copper mining companies are on track for the worst performance since 2008.<\/p>\n<p>The miners \u201care being hit from two sides,\u201d Daniel Briesemann, an analyst at Commerzbank, told he wire service, pointing to fears of a global recession and unprecedented disruptions to operations in South America where most of the world&#8217;s copper is mined. <\/p>\n<p>At least 17% of global copper supply is at risk from closures, according to Bloomberg Intelligence analyst Andrew Cosgrove.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Copper price jumps 4% as China manufacturing rebounds but analysts warn market is far from returning to normal levels.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center 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