Copper Rallies on Surprise US Federal Reserve QE Decision

Copper market update: Copper futures for December delivery rallied 2.1% following a surprise announcement that the Fed would not be tapering its stimulus program. By the close on Thursday, copper had rallied to $3.347 on the COMEX exchange in New York. Besides the surprising announcement from the Fed, declining stockpiles also supported copper’s rally according to Tetsu Emori of Astmax Asset Management. But new supplies expected to come online in the next 2-5 years, along with a slowdown in the Chinese economy, is tempering investor interest in copper. Peru for example is expected to produce 2.8 million tons of copper by 2016, which is up from 1.3 tons it produced in 2012. Read more…