Copper is at last getting a moment in the sun. Prices ended for the biggest weekly gain in two months as the metal that’s lagged behind its peers this year gets a boost from signs that demand may strengthen in China, the biggest consumer.
Figures this week showed new credit surpassed estimates after readings for factory output, investment and retail sales also exceeded expectations. Last week, Bank of China International said the time is coming to bet on gains for copper while shorting zinc. Chinese demand can do to any commodity, and copper is one of those markets where we see a lot of Chinese influence.
Zinc has rallied 38 percent this year amid forecasts for a worldwide deficit following mine depletions, and after some producers including Glencore Plc cut supply. Copper has advanced just 1.6 percent in 2016, the least among the six main base metals, amid speculation that growth in supply is topping demand to spur a surplus.