FX.co ★ Copper Rises on Signs of Robust Demand

Copper futures advanced beyond $4.60 per pound on Thursday, recovering some of the ground lost in the previous session. This upswing was fueled by indicators of vigorous demand in China, the world's leading consumer of copper, bolstering market outlooks. Analysts highlighted significant purchasing activity from State Grid Corp of China, which has spurred enhanced orders among wire and cable manufacturers. Further, data revealed a nearly 16% increase in home appliance sales over the five-day holiday at the start of May in China, reflecting robust consumer demand. Additionally, meetings between US and Chinese representatives in Switzerland this weekend aim to address trade issues, fostering optimism for a potential accord. In another development, China's central bank intensified stimulus efforts earlier this week by implementing a 10 basis point reduction in key lending rates and lowering the banks’ reserve requirement ratio by 50 basis points, which further supports the demand forecast.