Copper prices climbed to their highest in three weeks on Monday as more cities in top metals consumer China announced an easing of COVID-19 restrictions, with a weak US dollar also lending support to the metal.
Three-month copper on the London Metal Exchange was up 0.7% at $8,505.50 a tonne, as of 0200 GMT.
It hit its highest since Nov. 14 at $8,520.50 in early Asian trading.
On the Shanghai Futures Exchange, the most-traded January copper contract rose as much as 1.6% to 66,860 yuan ($9,599.70) a tonne, its strongest since Nov. 16.
Amid Beijing’s changing narrative on COVID-19’s health risks, more cities announced an easing of curbs on Sunday, lifting large-scale lockdowns, reducing regular tests and ending checks for negative results in public spaces.
China has given “hints that local government officials will likely exercise COVID measures with an intent to reduce their impact on the economy even if there are no further imminent changes in the overall COVID rules”, said Iris Pang, ING’s chief economist, Greater China.
Copper hits highest in over two weeks on easing of China Covid curbs
China’s restrictive zero-COVID policy has dampened overall demand and industrial activity, and sparked unprecedented protests in late November.
A soft dollar further boosted LME prices, as it made greenback-priced commodities cheaper for buyers using other currencies.
The dollar index was down 0.18% at 104.28, its lowest since June 28.
The index fell 1.4% last week. Among other metals, aluminium gained 1% to $2,570 a tonne, zinc added 1.7% to $3,130, lead rose 1.3% to $2,232 and tin climbed 4.1% to $24,200.
SHFE aluminium was up 1% at 19,375 yuan a tonne, zinc rose 0.7% to 24,675 yuan, nickel climbed 4% to 209,750 yuan, lead gained 1.3% to 15,940 yuan, and tin added 4.3% to 195,280 yuan.
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