Base metals continue to break records after breaking records on Friday as investors focused on the global energy and supply crisis could impact global economic growth.
While rising natural gas, coal and oil prices increase the production cost for metals, the price of base metals is rising in the markets. China, one of the most important aluminum producers, said that with the increase in coal prices, it can increase the use of electricity by 50 percent for energy-intensive sectors.
The index of the London Metal Exchange, which includes copper, aluminum, lead, tin, zinc and nickel, continued its rise after breaking its record in 2010 and climbed to 4,738.
Tianfeng Analyst Wei Lai said, “Concerns about global energy supply combined with low metal stocks have resulted in a major entry into the base metal sector.”
The decrease in copper stocks in the London Metal Exchange also caused the difference between the spot market prices and futures prices to reach record levels.
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