COPPER: the price increases especially for the sanctions against Russia.

Copper futures surged to $ 3.60 per pound in early October, extending a rally to more than three weeks high, after the London Metal Exchange imposed an immediate ban on the Russian firm's new metal deliveries. Ural Mining & Metallurgical Co. LME said the Russian firm's metals can only be delivered to its warehouses if the owner is able to prove to the exchange that this does not constitute a violation of sanctions, Bloomberg reported . Copper has also benefited from the recent dollar weakness, which makes green-priced commodities cheaper for buyers holding other currencies, but the reduction in supply on regulated markets, linked to the LME's decision, has led to a increase in parts.

In addition, robust physical demand for the metal from China, the largest consumer, thanks to government stimuli, has helped to support copper prices. However, the metal has remained down nearly 30% since March, when major central banks waged an aggressive tightening campaign to combat rising inflation that sparked global recession fears and curbed demand. overall.

So, right now, we have two alternative and opposite thrusts: on the one hand, the recessive expectations that are only partially tempered by China, which lead to a drop in the price, and on the other, the restrictions on Russia and its exports, which limit or at least to distort the supply of metal, very useful on an industrial level. a larger price increase would only spur stagflation, the demand case and the total global recession.

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The COPPER article: increases the price especially for sanctions against Russia. comes from ScenariEconomici.it .

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This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/rame-aumenta-il-prezzo-soprattutto-per-le-sanzioni-alla-russia/ on Thu, 06 Oct 2022 08:53:32 +0000.