Copper rallies to 3-year high

Copper in London surged to the highest in almost four years after China ordered its top producer to halt output to combat winter pollution, fueling a rally this year driven by optimism about demand and supply disruptions at mines. Jiangxi Copper was told to cut production for at least a week before a new assessment is made on local pollution levels. Earlier in the month, the No. 2 smelter, Tongling Nonferrous Metals Group, was asked to make similar cuts.

Copper for delivery in three months rose 1.6 per cent to $7,236.50 a metric tonne ($3.28 a pound) on the London Metal Exchange as trade resumed after the Christmas break. The price earlier touched $7,259, the highest since January 2014.

The metal has now risen for nine days, the longest streak since 2004, and has gained 31 per cent this year, the most among LME metals after aluminum.