London copper bounces off 5-week low on China demand hope

Copper prices in London rebounded off a five-week low on Thursday as market participants kept up hopes for a demand recovery in top consumer China.

Three-month copper on the London Metal Exchange rose 0.6% to $8,909 a tonne by 0310 GMT, while aluminium increased 0.8% to $2,403.50 a tonne, zinc advanced 0.2% to $3,205 a tonne and lead was up 0.8% to $2,068 a tonne.

LME copper hit a five-week low on Wednesday as fears of further interest rate hikes boosted the dollar, making greenback-priced metals more expensive to holders of other currencies.

While actual copper demand remained tepid, prices were supported by hopes that consumption of the metal will rebound eventually in China after the country removed harsh COVID-19 restrictions.

The most-traded March copper contract on the Shanghai Futures Exchange fell 0.6% to 68,460 yuan ($9,998.83) a tonne, nickel dropped 1.4% to 204,430 yuan a tonne, zinc shed 1.1% to 22,870 yuan a tonne.

Copper gains on supply disruptions, Fed rate-hike concerns weigh

SHFE aluminium edged up 0.1% to 18,500 yuan a tonne and tin increased 0.4% to 213,680 yuan a tonne, while lead fell 0.4% to 15,160 yuan a tonne.