Home Business Copper climbs after China relaxes quarantine rules

Copper climbs after China relaxes quarantine rules

3 min read
Comments Off on Copper climbs after China relaxes quarantine rules
0
49


Article content

LONDON — Copper prices rose on Tuesday as

a weaker dollar reinforced hopes for stronger demand after top

consumer China relaxed its COVID-19 quarantine rules, though

gains were capped by concerns over the global economy.

Benchmark copper on the London Metal Exchange (LME)

traded up 1% at $8,500 a tonne in official rings. Prices of the

metal viewed by investors as a gauge of economic health had

touched $8,122.50 on Friday, the lowest since February 2021.

“China’s hard lockdowns have hit manufacturing activity and

Article content

industrial metals demand,” said Julius Baer analyst Carsten

Menke. “Markets fear economies can’t cope with this mix of high

inflation and tightening monetary policy.”

COVID: China will halve to seven days its COVID-19

quarantine period for overseas visitors, with a further three

days spent at home.

The country’s state planner also boosted sentiment by saying

it would roll out tools in its policy reserve in a timely way to

cope with economic challenges.

Clues to Chinese demand for industrial metals will come

later this week from surveys of purchasing managers in the

manufacturing sector.

DOLLAR: A weaker U.S. currency makes dollar-priced metals

cheaper for holders of other currencies, which tends to boost

Article content

demand. This relationship is used by funds to generate buy and

sell signals from numerical models.

GROWTH: Rising inflation and interest rates have fueled

worries about a global economic recession.

SPREADS: Concerns over low zinc stocks in LME-registered

warehouses have eased. This can be seen in the narrowing premium

for cash metal over the three-month zinc contract ,

last at $66 a tonne compared with more than $200 last week.

But zinc availability on the LME remains a problem as

canceled warrants — material earmarked for delivery — at 77% of

the total indicate that more metal is due to leave LME

warehouses over coming weeks .

Three-month zinc rose 1.7% to $3,376 a tonne.

OTHER METALS: Aluminium was up 1% at $2,519.5, lead

was down 0.5% at $1,994, tin gained 2.4% to

$27,650 and nickel jumped 4.5% to $23,915.

(Reporting by Pratima Desai

Additional reporting by Brijesh Patel in Bengaluru

Editing by Vinay Dwivedi and David Goodman

)



Source link

Load More Related Articles
Load More By 
Load More In Business
Comments are closed.

Check Also

year JGB yield falls, longer-term notes keep rising

Article content TOKYO — The Japanese government bond market moved in mixed directions on W…