Copper hits two-week highs as China COVID controls eased

By: News Team

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Copper hits two-week highs as China COVID controls eased

Prices for copper They hit two-week highs on Wednesday as the easing of COVID restrictions in China, the world’s top consumer of metals, spurred purchases, but recession risks and expectations of lower demand limited gains.

At 1117 GMT, benchmark copper on the London Metal Exchange (LME) was up 1.3 percent at $8,457 a tonne after touching $8,520, its highest since Dec. 14.

China will stop requiring quarantine on incoming travelers from Jan. 8, a major step toward easing restrictions at its borders, which have been largely closed since 2020.

“The easing of China’s zero COVID-19 restrictions has lifted the market’s mood much more than demand will and the property market is unlikely to see a quick recovery,” said Carsten Menke, an analyst at Julius Baer.

“Growth elsewhere should not be strong enough to offset China’s weakness, suggesting that 2023 will be another cyclically difficult year for copper and industrial metals in general.”

*Rising COVID cases in China and the Lunar New Year holiday next month are expected to dampen demand for metals, although supply concerns could lend some support.

  • Lead prices reached $2,302.50 a tonne, their highest level since May 5, due to concerns about supplies and declining stocks at authorized LME warehouses, which at 25,000 tonnes are approaching 15-year lows.

Three-month lead was down 0.4 percent at $2,264; the zinc gained 2.8 per cent to $3,048; the aluminium yielded 0.3 per cent to $2,383; tin rose 4.6 percent to $25,040; and the nickel It advanced 4.2 per cent to $30,800.

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