Get all your news in one place.
100’s of premium titles.
One app.
Start reading
The Guardian - UK
The Guardian - UK
Business
Elena Moya

Commodities rally as copper reaches 20-month high

Commodity shares rallied after copper reached a 20-month high, on hopes that a global economic recovery will spur industrial demand for metals.

Vedanta Resources and Kazakhmys led the FTSE 100, which traded 18 points higher at 5763.47 points at 2.25pm.

Copper, which is mostly used to make electric cables, gained 1.6% to more than $8,000 (£5,275) a tonne, the highest since August 2008. Kazakh copper miner Kazakhmys gained 2.7% to £16.25, while Eurasian Natural Resources, also based in Kazakhstan, added 2.6% to £12.58. Vedanta Resources, India's largest copper producer, added 2.3% to £29.30. Xstrata, the world's fourth-largest copper producer, rose 3.3% to £15.00.

"The story about continued economic recovery has lifted commodity prices, so we've seen a boost for mining stocks," said David Jones, a strategist at IG Index. "The commodities story still has a few months left, as news suggests there's a recovery. I wouldn't be surprised if commodities continued to rise, they're still strong."

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.