Copper prices rose on Tuesday, helped by a slight pullback in the U.S. dollar, although worries over COVID-19 lockdowns in top metals consumer China and weaker global economic growth kept gains in check.
Benchmark three-month copper CMCU3 on the London Metal Exchange (LME) was up 1.3% at $9,361.50 a tonne as of 0709 GMT, after falling to its lowest since Dec. 15 on Monday.
The most-active June copper contract on the Shanghai Futures Exchange SCFcv1 ended daytime trading up 0.1% at 71,720 yuan ($10,700.33).
“We are see seeing some bargain-hunting and a weak dollar (is) helping prices today after a massive sell-off in commodities,” a commodities analyst at Mumbai-based broker Anand Rathi Shares said.
“For base metals, fears of a slowdown in Chinese demand amid a resurgence of COVID-19 have damaged sentiment. However, demand is likely to improve once China emerges from lockdowns.”
The dollar =USD eased after scaling a 20-year peak in the previous session, making greenback-denominated metals less expensive for buyers using other currencies.
However, the metal used in power and construction, has fallen around 14% from March’s record high of $10,845, as continued COVID-19 restrictions in China dented the demand outlook.
China’s two largest cities tightened COVID-19 curbs this week to battle with the virus outbreak that has battered the world’s second-largest economy.
Adding to concerns over global economic growth, the Federal Reserve and other major central banks raised interest rates last week to fight soaring inflation.
COPPER: Chile, the world’s top copper producer, saw exports of the red metal reach $4.04 billion in April, the Andean country’s central bank said.
PRICES: LME aluminium CMAL3 added 0.3% to $2,763 a tonne, zinc CMZN3 rose 1.2% to $3,659.50, lead CMPB3 gained 0.6% to $2,165.50, while nickel CMNI3 eased 0.5% to $28,020 and tin CMSN3 slipped 1% to $36,600.
Shanghai aluminium SAFcv1 rose 0.4%, zinc SZNcv1 lost 1.9%, nickel SNIcv1 dropped 4.1%, lead SPBcv1 fell 2% and tin SSNcv1 slipped 4.5%.
