Copper rises to 3-week high on hopes of strong Chinese demand

SINGAPORE: London copper prices rose for a fourth consecutive session on Friday, heading for a second straight weekly gain, as an easing of COVID-19 curbs in China boosted demand expectations in the world’s top consumer of the metal.

Three-month copper on the London Metal Exchange rose 0.6% to $8,592 a tonne, as of 0324 GMT. The market, which hit its highest since Nov.

14 at $8,598 earlier in the session, is up for a second week in a row.

The most-traded copper contract on the Shanghai Futures Exchange added 1.2% to 66,830 yuan ($9,604.08) a tonne.

“The relaxation of COVID-19 rules has raised hopes of improving consumer demand,” ANZ said in a report.

“However, it’s been the package of support for the property sector which has really boosted sentiment.”

Used in power and construction, copper is up more than 4% this month after rising 10.6% in November as expectations began to build that China will retreat from its zero-COVID policies.

China on Wednesday announced the most sweeping changes to its resolute anti-COVID regime since the pandemic began three years ago, loosening rules that curbed the spread of the virus but sparked protests and hobbled the world’s second-largest economy.

Copper falls as weak China data fuels demand worries

Goldman Sachs raised its 2023 forecast for average copper prices to $9,750 per tonne from $8,325 previously.

It said that copper surplus is no longer likely to happen in 2023, with global visible stocks falling to their lowest in 14 years. China’s Bank of Communications said it had signed pacts to support eight property firms, easing a liquidity crunch in the sector, which is a major user of metals.

LME aluminium was largely unchanged at $2,504 a tonne, zinc increased 0.2% to $3,243 a tonne, tin was up 0.4% at $24,720 a tonne, while lead fell 0.2% to $2,215.50 a tonne.

SHFE aluminium was little changed at 19,185 yuan a tonne, zinc traded almost flat at 24,795 yuan a tonne, lead added 0.4% to 15,785 yuan a tonne and tin rose 1.4% to 198,660 yuan a tonne.