HomeBusiness/EconomyRise In Copper Prices Due To Reduced Inventory And Increased China Demand

Rise In Copper Prices Due To Reduced Inventory And Increased China Demand

On the strength of increasing demand from major user China and a wobbly U.S. currency, copper prices increased on Thursday, boosted by supply concerns amid tighter inventories and production hiccups.
As warrant copper stocks on the market fell to the lowest level since 2021, three-month copper on the London Metal market was up 0.7% to $8,840.50 per tonne by 0200 GMT, extending gains from the previous session.

The project must be suspended after a court ruled that Ecuador violated the rights of local communities in a biodiverse province to an environmental consultation on a joint copper mining venture by the state-run ENAMI and a subsidiary of Chile’s Codelco.

According to a private sector survey released on Thursday, China’s services activity accelerated in March at its fastest rate in two and a half years as a result of strong job growth, new orders, and a consumption-driven post-COVID recovery.

In London, most other metals also recovered. From a five-month low, LME zinc jumped 0.9% to $2,815, aluminum increased 1.2% to $2,362 per tonne, tin increased 1.5% to $24,600, lead increased by 0.4% to $2,118, and nickel decreased by 0.2% to $22,675.

The market was also helped by a weaker US dollar, which made commodities priced in dollars more enticing for non-dollar holders to purchase.

The dollar increased somewhat on Thursday, but it hasn’t moved much away from a recent two-month low as traders assessed the potential impact of crucial U.S. jobs data that will be released over the long weekend on Federal Reserve policy.

On the Shanghai Futures Exchange, the most actively traded May copper contract fell 0.8% to 68,620 yuan ($9,975.87) a tonne.

SHFE lead increased by 0.2% to 15,240 yuan, while zinc decreased by 2% to 22,070 yuan, tin by 4.2% to 196,580 yuan, and nickel by 3% to 172,940 yuan a tonne.

Following the conclusion of trade on Thursday, SHFE will reduce the margin requirements and trading restrictions for basic metals.

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