Copper prices were stable on Tuesday after hitting their highest in more than three weeks on hopes China’s lifting of COVID-19 restrictions would boost demand, but a rising dollar undermined metal earnings.
* Three-month copper on the London Metal Exchange (LME) was trading at $9,540 a tonne at 1037 GMT, after hitting its highest level since May 5 at $9,591.50.
* Shanghai authorities removed lockdown fences in the city on Tuesday, preparing to lift a two-month lockdown at midnight, while the Chinese cabinet announced a 33-measure stimulus package to revive its pandemic-ravaged economy.
* “The news from China is enough to create a refocus in the market towards the possibility of a pick-up in demand,” said Ole Hansen of Saxo Bank in Copenhagen. “If we haven’t seen it already, we are very close to seeing a bottom in industrial metals, where we can bounce.”
* Copper fell 18% in the past two months after hitting a record high of $10,845 a tonne in early March, as fears of a slowdown in China and high inflation clouded the outlook for global growth and consumption.
* For May, copper on the LME is on track for its second monthly low, down 2.2%.
* Among other base metals, tin added 0.6% to $34,790 a tonne, but is forecast to fall 13.6% in May, its worst monthly performance since 2012.
* Aluminum fell 1% to $2,860 a tonne, and nickel fell 2.3% to $28,600. However, zinc was up 1.2% at $3,948.50, and lead was slightly higher at $2,175.50.