Copper prices rise due to supply and demand
Copper shares on the ASX are on fire today, with some even up 15%. $Sandfire Resources Ltd (SFR.AU)$, $WA1 Resources Ltd (WA1.AU)$, and $Metals Acquisition Ltd (MAC.AU)$ are all seeing positive upticks.
This could be subsequent to three-month copper future prices reaching a 12-month high of US$8,991/tonne due to tight supply and demand.
Decrease in supply & Increase in demand
Over the last week, China has moved closer to potentially cutting copper production by 10% last week, with Chinese copper smelters struggling to refine the base metal in an economical way (Motley Fool).
In addition, despite the decrease in supply, there is a new potential increase in demand.
As reported by Reuters, China's central bank overnight announced the removal of minimum down payments on vehicle financing - increasing the copper required to produce more vehicles.
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