Investing.com – Copper prices rallied to a three-year high on Monday, leading other industrial metals higher, after data showed China’s factory-gate prices shot up to a six-month high last month.
China’s producer price index rose 6.9% in September from a year ago, well above the 6.3% forecast, the National Bureau of Statistics (NBS) said earlier, in a sign manufacturing and construction activity remains robust.
Comex copper futures jumped 8.5 cents, or around 2.7%, to $3.218 a pound by 7:10AM ET (1110GMT), after reaching their highest since Aug. 2014 at $3.230 in overnight trade.
China is the world’s biggest consumer of metals and construction is a key driver of demand.
News from China will likely remain at the top of the agenda for the markets this week as the Asian nation prepares for its Communist Party Congress commencing on Wednesday.
The political meeting, which takes place once every five years, has a mandate of approving new policies as well as appointing to certain positions those individuals who will lead the Asian nation over the next five years.
Meanwhile, data on third-quarter gross domestic product is due on Thursday. The report is expected to show the world’s second largest economy grew 6.8% in the three months ended September 30, easing slightly from the previous quarter’s pace of 6.9%.