Copper reaches near five-month maximum after China announces plans to boost demand

Bloomberg reports that copper price reached near five-month high after China, the largest consumer of the metal, said it intends to boost demand.

On the weekend, the Chinese authorities presented a special plan aimed at stimulating consumption, which increased faster at the beginning of the year. It helped compensate for the impact of US President Donald Trump’s import tariffs which are putting pressure on Chinese exporters. In the first two months, retail sales in China rose by 4%, exceeding forecasts, the news agency says.

According to Bloomberg, copper has risen about 12% this year as US import duties add to volatility in the market, experiencing tight supply. Meanwhile, China's real estate sector, the backbone of the demand for metals, continues to struggle. The pace of decline in new home prices accelerated last month, despite efforts by Chinese authorities to support the market.

According to the news agency, copper price reached $9,850 per ton on Friday, which is the highest since October last year.