The Chinese are back in full growth mode, of that there can be no doubt. The latest PMI numbers, both for Chinese manufacturing and non-manufacturing are firmly in positive territory, and the Chinese have for many months been reporting that their country is largely free of the coronavirus.
Chinese growth for years has underpinned the demand for commodities for years now, and continues to do so.
The ongoing positive sentiment about Chinese growth has sent copper prices to eight year highs in Shanghai and four year highs in London, with infomine.com quoting a price of US$3.34 per pound at the time or writing.
China is the world's biggest consumer of copper.
It's not just the demand side that's been helping the copper price, though.
There have also been some constrictions to supply as coronavirus-related issues have caused operations at several significant mines, particularly in South America, to be disrupted. The combination of strong demand from China and cutbacks in supply have put the market on track for a deficit this year.
Global copper inventories are at the lowest since 2014.
