Copper rallies as signs of China buying lends support after rate hike

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeCommoditiesNewsCopper rallies as signs of China buying lends support after rate hikeThe critical metal is still consolidating after slumping from a record last weekAuthor of the article:Mark Burton and Eddie SpenceCopper had rallied on bets that the U.S. would hit the refined metal with tariffs, with an ongoing surge in U.S. imports triggering concerns about a supply squeeze. Photo by GLODY MURHABAZI/AFP via Getty ImagesCopper rallied as traders shrugged off hawkish messaging from the Federal Reserve chair, with signs of increased buying activity in China boosting sentiment.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountPrices advanced 1.8 per cent to settle at US$14,491.50 a metric ton in London, climbing alongside equities as investors were undeterred by a widely expected interest rate hike by the United States central bank on Wednesday.Policymakers at the Federal Reserve pencilled in an additional increase for later this year — a potential headwind for metals demand in capital-intensive manufacturing and industrial sectors. Still, the Fed’s hawkish messaging and a decline in oil prices helped to support broader confidence across markets that the central bank can keep inflation under control.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againCopper also got a boost on signs that China’s spot demand for copper is rising, with the premiums that importers pay above futures to secure cargoes in Shanghai’s Yangshan port climbing sharply over recent days.The metal is still consolidating after slumping from a record last week. Copper had rallied on bets that the U.S. would hit the refined metal with tariffs, with an ongoing surge in U.S. imports triggering concerns about a supply squeeze elsewhere.Yet so far the U.S. has held off on new trade measures, putting that rally in doubt. Expectations of high demand from data centres and renewable energy, as well as supply disruptions at key mines, are still providing support.“Reports of no U.S. copper tariffs unwound some of the physical market speculation,” RBC Capital Markets analyst Sam Crittenden said in a note. “Despite near-term price weakness, fundamentals remain constructive.”All other base metals moved higher, with zinc rising 1.8 per cent and aluminum climbing one per cent.—With assistance from Yvonne Yue Li.We apologize, but this video has failed to load.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. 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