Business

Copper price dwindles

COPPER cathodes.

KALONDE NYATI, Lusaka
THE price of copper yesterday declined from four-week highs as markets waited for key decisions by the Japanese and United States (US) central banks.
According to Reuters, the price of Zambia’s top export earner, copper, on the London Metal Exchange edged down to US$4,776 a tonne by 00:40 GMT, paring small gains from the previous session.
Prices on Tuesday hit their highest since August 22 at US$4,800 a tonne.
Reuters reports that the US central bank could again cut its forecasts for how high interest rates will need to go in an economy where output, productivity and inflation are growing at a slower pace than in past decades.
Similarly, the Bank of Japan was yesterday expected to make negative interest rates the centrepiece of a new policy framework – widely seen as a desperate attempt to show it still has the means to fight chronic stagnation, thus triggering the downward trend of the price of copper on the international market.
However, the price of the commodity on the Shanghai Futures Exchange increased marginally by 0.4 percentage point to 37,370 yuan (US$5,603) a tonne.

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