Copper hits highest since June on hopes of economic growth in China

Copper prices touched their highest level since June on Friday as investors anticipated that the easing of coronavirus restrictions in China will boost economic growth and demand for metals.

The yuan, meanwhile, rose to its highest level since September, helping dollar-valued metals by making them cheaper for buyers on the world’s largest commodity market.

With China abandoning key parts of its zero COVID-19 policy this week, the country’s economic growth will continue to accelerate, state media CCTV said, citing Premier Li Keqiang.

Economists expect new yuan lending to have picked up in November and state support for the metal-intensive housing market helped boost Chinese stock markets.

Benchmark copper on the London Metal Exchange (LME) rose to $8,618 a tonne, the highest level since June 23, before trading 0.2% lower at $8,526.50 a tonne at 11: 21 GMT.

The prices of the metal used in energy and construction accumulate a rise of 3.5% this month after climbing 10.6% in November.

However, weak growth still looms over markets as investment banks expect the global economy to slow further in 2023 and the US Federal Reserve and European Central Bank are expected to raise interest rates. next week.

But expectations that the Fed’s rate hikes will slow have already weakened the dollar considerably, giving metals a boost.

In other base metals, aluminum was down 1% at $2,478.50 a ton; zinc fell 0.6% to US$3,216.50; nickel rose 1.8% to $30,250; lead gained 0.5% to $2,222; and tin lost 0.1% to US$24,610.

With information from Reuters