Copper extended its rebound on Friday as global recession fears faded and investors focused on low inventories and supply threats.
At 1000 GMT, three-month copper on the London Metal Exchange (LME) was up 0.6% at $7,774 a tonne, after gaining 0.7% the previous session.
Copper has rebounded from three days of losses triggered by weak global factory data and heightened tensions between the United States and China following US House Speaker Nancy Pelosi’s visit to Taiwan.
The metal used in energy and construction has plunged 28% since hitting an all-time high of $10,845 in March.
“For a price crash to occur, the global recession would have to be in sync, but we’re not seeing that. Only Europe is in recession, while China has stabilized”said Gianclaudio Torlizzi, a partner at consultancy T-Commodity in Milan.
Chinese authorities are injecting stimulus into the economy and launching metal-intensive infrastructure projects to boost economic growth.
The most-traded September copper contract on the Shanghai Futures Exchange rose 1.5% to 60,310 yuan ($8,938.66) a tonne.
In other base metals, aluminum on the LME rose 1.4% to $2,437.50 a tonne; nickel gained 0.6% to US$22,350; tin advanced 0.8% to $24,750; zinc fell 0.4% to US$3,435.50; and lead was down 0.3% at $2,040.
Source: Elcomercio
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