London copper prices rose to their highest in nearly four weeks on Tuesday, after data showed an increase in Chinese factory activity and an easing of COVID-19 lockdowns in top metals consumer China lifted demand prospects.
Three-month copper on the London Metal Exchange CMCU3 was up 0.2% at $9,557 a tonne by 0702 GMT, after hitting its highest since May 5 at $9,587 earlier in the session.
For the month of May, copper is on track for its second monthly decline with a drop of 2.2%, after lockdowns in China and rising interest rates led to concerns about growth. The metal is used as a gauge of global economic health.
Other metals also headed for monthly losses, and tin CMSN3 poised for its worst month since May 2012.
In Shanghai, the most-traded July copper contract in Shanghai SCFcv1 ended daytime trading up 0.2% at 72,120 yuan ($10,835.66) a tonne.
“There are better demand expectations since industrial activity is recovering and consumer demand is increasing on the back of declining COVID-19 cases in China, Shanghai reopening and manufacturing restarting from Wednesday,” a metals trader in Singapore said.
Data showed China’s factory activity contracted at a slower pace in May, as restrictions on some plants were lifted.
Shanghai on Monday announced an end to its two-month long COVID-19 lockdown, allowing the vast majority of people in China’s largest city to leave their homes and drive their cars from Wednesday.
SUPPORT: China will accelerate its issuance of special bonds by local governments in order to stabilise the country’s slowing economy, the finance ministry said on Monday.
DOLLAR: Limiting gains, the dollar =USD rose 0.3% against its rivals, making greenback-denominated metals more expensive for buyers using other currencies. /
FED: The U.S. Federal Reserve should be prepared to raise interest rates by half a percentage point at every meeting from now on until inflation is decisively curbed, Fed Governor Christopher Waller said.
PRICES: LME aluminium CMAL3 was up 0.1% to $2,891 a tonne, zinc CMZN3 rose 0.8% to $3,932, nickel CMNI3 gained 0.1% to $29,315, lead CMPB3 added 0.6% to $2,188, tin CMSN3 was up 0.4% at $34,720.
Shanghai aluminium SAFcv1 was up 0.2%, zinc SZNcv1 rose 0.5%, nickel SNIcv1 added 1.1%, lead SPBcv1 gained 1.1%, and tin SSNcv1 rose 1.6%.
