China: copper hits month-long highs after omicron variant fears eased

The prices of the copper in China they reached a one-month high on Tuesday, helped by fewer concerns about the impact of the omicron variant of the coronavirus and hopes that a monetary policy that supports economic growth in the world’s main consumer of metals will continue.

According to Reuters, the February copper contract, the most traded on the Shanghai Futures Exchange, ended the day with a rise of 1%, to 70,450 yuan (11,059.83 dollars) a ton. Earlier in the day it hit 70,870 yuan, its highest level since Nov. 26.

It should be noted that the London Metal Exchange will be closed on Tuesday as it is a public holiday.

“The appetite for risk improved when data showed that the new variant of the coronavirus could cause milder symptoms,” analysts at Huatai Futures said in a note to the agency.

For its part, Zijin Mining has started production at its Qulong copper mine in Tibet, one of the largest in China, adding a new source of supply to the market for next year.

China is expected to maintain its expansionary monetary policy next year as it seeks to stabilize growth and lower financing costs for businesses amid mounting headwinds, the central bank said on Monday.

Meanwhile, stock and oil prices also rose, as some European countries refrained from imposing harsh restrictions on mobility and the British government, in particular, awaited further evidence on whether its health service can cope with high infection rates.