Year-on-year customer prices climbed by 4.4% according to a statistics report recently released in Beijing, which also revealed that domestic copper production had decreased.
“Expectations of higher inflation are what’s provided the additional catalyst to take copper above the previous record,” an analyst at Barclays Capital in London told Regal Group International sources. “It’s the picture painted by the confluence of data that came out today. When you look at the fundamentals, there is a lot there to find support as well.”
Industrial production in China has risen 13.1% while retail sales increased by 18.6% in October compared to the same time a year ago, the government informed Regal Group International, and the nation’s National Bureau of Statistics revealed that China’s refined-copper production fell by 1.2% to 400,000 tons last month.
“The latest Chinese production data masks underlying strong copper demand,” the Barclays Capital analyst said. “And when you look at the economic data, it’s also suggestive of continued strong growth in metals demand.”
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