This Wednesday, cobren prices showed a rise, after hitting a month high, with advances also for other industrial metals. This comes after China, the main consumer, announced measures to shore up its real estate sector.
At 1208 GMT, three-month copper on the London Metal Exchange (LME) was up 1.1% at $ 9,812 a tonne. In this way, it adds 25% gains in 2021 after the 26% rise in 2020, although it has lost momentum in recent months due to the slowdown in economic growth.
Additional price support came from signs of tight supply. Stocks of most metals in LME warehouses show declines, while contracts for express material are trading at premiums.
Although China’s supportive measures are helping, it is not enough to reignite copper’s rally, according to independent analyst Robin Bhar. “I don’t see anything right now that takes us out of the $ 9,000 to $ 10,000 range,” he told Reuters.
Also, Chinese regulators have told some banks to make more loans to real estate companies, according to sources. Officials said this week they would increase financial support for companies to support the slowdown in the economy.
While Japan’s manufacturing activity grew at its fastest pace in nearly four years in November, German business sentiment deteriorated for the fifth month in a row.
China’s yuan has held firm against the greenback, even as the dollar index has climbed to highs since 2020, making raw materials more expensive for holders of other currencies.
Source: Reuters
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