Copper’s price has rebounded from losses seen earlier in the week as traders and analysts bet on more economic stimulus measures from China’s government.
%Copper futures on the London Metal Exchange rose 1% to $9,772.50 U.S. a ton, while December copper futures climbed 1.3% higher to $4.46 U.S. per pound in trading on Oct. 11.
The rally in copper reverses losses in the red metal that were seen earlier in the week after China’s government failed to announce any new economic stimulus for the country’s ailing economy.
China is the world’s top importer of copper, and a stronger economy is expected to lift demand for the industrial metal.
Traders and analysts are buying copper ahead of a press conference by China’s finance ministry that has been scheduled for Oct. 12.
Chinese officials are widely expected to outline plans for more stimulus to support the economy that is struggling with weak consumer spending and a debt crisis in the property sector.
Analysts on Wall Street are forecasting that Beijing will announce at least $283 billion U.S. of new stimulus measures to help bolster the domestic economy.
That would certainly be good news for copper, the price of which is down 2% on the year amid ongoing demand concerns.