Copper prices hit a two-year high on rising demand from China

Courtney Goldsmith
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China consumes nearly half the world's copper (Source: Getty)

Copper prices on the London Metal Exchange jumped to the highest level seen in more than two years today on easing worries about the Chinese economy and reports of a Chinese ban on scrap metal imports.

London copper prices hit $6,400 a tonne, which was the highest level since May 2015. Copper prices have gained more than five per cent just this week.

The metal was also boosted by a weaker US dollar.

Read more: Chinese economy delivers pleasant second-quarter growth surprise

Reports emerged today that China, the world's biggest commodity buyer, could ban imports of some scrap metal by the end of next year, which would reduce supply in the country and increase demand for imported refined copper.

China consumes nearly half of the world's copper, with intake estimated at 23m tonnes this year.

London-listed miners including BHP Billiton, Anglo American, Glencore and Rio Tinto were buoyed on the news.

Read more: FTSE 100 miners' shares rise on encouraging China GDP figures

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