LONDON: Copper prices recovered from their lowest levels in five weeks on Thursday despite a firmer dollar, as investors looked ahead to an expected revival in demand in top metals consumer China.
Three-month copper on the London Metal Exchange (LME) rose 0.9% to $8,934 a tonne by 1515 GMT after sinking 1% on Wednesday and touching its weakest since Jan. 10.
The dismantling of strict COVID-19 controls in China last month sent copper surging to a seven-month peak while investors took heart on Thursday from data showing China’s new home prices rose in January for the first time in a year.
The property sector accounts for significant metals demand.
“There’s high-level data showing that things are beginning to stir in China, but when it comes to infrastructure and construction, it will take a bit more time,” said independent consultant Robin Bhar. “There’s good dip-buying around to support the underside.
People are taking the opportunity to build longs, whether tactically as we go into Q2 or strategically because of the green energy transition.” Copper held its gains despite a reverse in the dollar after US data.
LME aluminium dipped 0.1% to $2,383 a tonne, zinc shed 0.9% to $2,991 and lead eased by 0.4% to $2,043.50 while nickel rose 0.3% to $26,225 and tin added 0.3% to $26,730.
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