Copper trades stable on hopes of rising Chinese demand

Copper trades stable on hopes of rising Chinese demand

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.

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