AFTER a long period of low copper prices on international markets, the red metal has suddenly started to register an upswing and yesterday posted a rise of $63.50 to mark a new price of US$5,247 a tonne.
The latest Cavmont Bank Zambia daily market report shows that price of the red metal together with other commodities had been performing very poorly on the international scene since the last quarter of the 2014.
This has led to an economic crisis for Zambia depends on the red metal for the generation of foreign exchange.
And Cavmont reports that the local currency maintained a firm stand against the US dollar on Tuesday.
The bank attributed the performance of the Kwacha to the matched demand by supply.
The local unit opened at K7.660 / K 7.680, K0.015 weaker than Monday’s closing level and traded at these levels for most of the day.
It was further reported that the demand side was mostly subdued as importers continued anticipating for a stronger Kwacha.
It also reported that the current trends seemed to indicate that the local unit was likely to remain firm in the interim, with a bias towards appreciation as exporters convert for month end obligations.
The Kwacha closed at K7.660 / K7.680 remaining unchanged from Monday’s closing levels.
Meanwhile, Metal Bulletin’s offices in Asia reported yesterday that copper rebounded above $5,300 per tonne during the Asian morning trading session.
The Bulletin attributed the performance to measures taken by the Chinese government to reassure equity markets and a depressed dollar index.
It also reported that Century Aluminum Co was permanently shutting its Ravenswood, West Virginia, USA, smelter effective immediately, due to the lack of a satisfactory power contract and challenging market conditions.