Copper is on track for its biggest monthly gain since April 2021 as investors bet that China may abandon its zero coronavirus policy, which would boost demand.
Copper for March delivery rose 3.6% to $3.76 a pound, or $8,274 a metric ton, on the Comex division of the New York Mercantile Exchange.
The metal, used in construction and electricity, hit a near five-month high of $8,600 a tonne earlier this month, but has largely retreated on concerns that rising cases of the virus in China could curb growth and therefore demand for the metal.
China is pushing for greater vaccination of the elderly, prompting speculation of a further relaxation of the zero-outbreak rule.
On Friday, China announced a plan to cut banks' reserve requirements to boost the money supply, further fuelling bullish sentiment. This week, authorities relaxed rules on share sales by developers, adding measures aimed at boosting liquidity in the sector.
Still, the coronavirus outbreak in China, combined with domestic stimulus measures and tight physical supplies, will increase copper price volatility, the Chaos Sanyuan Research Institute said in a report on Wednesday.
FocusEconomics, an independent research firm based in Barcelona, said demand for copper and industrial metals should be quite weak in the first half of next year "as global interest rates peak and the Chinese economy is likely to continue to be weighed down by the property crash and COVID-19".
Consensus forecasts for average copper prices in 2023 are lower than current levels of about $7,660 a tonne, with the lowest forecast at just $5,430 and the highest at $8,775 a tonne, according to FocusEconomics.
Copper materials: DINH59, HPB58-3, HPB59-1, H62, H65, H68, H70, H85, H90 lead-free environmental protection copper, manganese brass, silicon brass, aluminum brass, pure copper T2, TU1, TU2, phosphorus deoxidized copper TP2, H62, C36000, aluminum bronze 9-4 tin bronze 5-5-6-6-3 10-1 10-2 Zinc white copper nickel white copper silicon Bronze Qsi3-1 Qsi1-3 Chrome bronze Chrome zirconium copper C18200 C18000 C18150 CuNi2Si Tin-phosphor Bronze QSn6.5-0.1QSn7-0.2C5191.
Post time: Dec-01-2022
