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Copper prices rise to 3-week highs on China demand hopes

Copper prices rise to 3-week highs on China demand hopes

Copper prices rise to 3-week highs on China demand hopes

Copper prices rose to three-week highs on Monday as hopes for stronger demand were boosted by the easing of COVID-19 restrictions in China, expectations of a further reopening of the country’s economy and a weaker dollar.

Benchmark copper on the London Metal Exchange was up 0.3% at $8,479 a tonne as of 1122 GMT, after previously hitting $8,550 a tonne, the highest level since November 14.

China’s zero-COVID policy has become an outlier globally as most countries seek to live with the disease, despite Beijing taking 20 new measures to simplify controls last month against a backdrop of growing public frustration.

Futures are trading on the idea of ​​China reopening and the weaker dollar,” said Geordie Wilkes, an analyst at Sucden Financial, adding that a full reopening in China was some way off.. “But the physical market is not as tight as before and the demand is low”.

Weak fundamentals were highlighted last week with the release of China’s official manufacturing purchasing managers’ index (PMI), which at 48 for November was the lowest in seven months.

Federal Reserve policymakers signaling less aggressive rate hikes than previously suggested have seen the dollar slide against other major currencies.

A lower US currency makes dollar-denominated metals cheaper for holders of other currencies, which could boost demand.

Meanwhile, aluminum was down 1.1% at $2,517 a tonne from a previous $2,577, the highest level since June 16. Zinc was up 1.6% at $3,129; lead was up 0.7% at $2,219; tin rose 4% to $24,200; and nickel was down 1.9% at $28,300.

With information from Reuters

Source: Elcomercio

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