china: Copper edges higher on low stocks; China COVID curbs weigh

Copper prices rose on Tuesday, helped by low inventories, but China’s determination to maintain a strict zero-COVID policy limited gains.

The most-traded December copper contract on the Shanghai Futures Exchange (SHFE) rose 0.3% to 65,780 yuan ($9,061.11) per tonne as of 0755 GMT, while three-month copper on the London Metal Exchange (LME) rose 0, 2% up. at $7.931 per ton.

London copper prices rose 7.3% last week, their best weekly gain since March, while SHFE copper hit its highest level since June 20 on Monday on hopes China would ease its tough COVID-19 restrictions. which could boost metal demand.

The price rise was exacerbated by low inventories in global warehouses, particularly in China, where combined stocks in SHFE and bonded warehouses totaled 84,164 tons, hovering near a record low of 72,159 tons set in October.

However, Chinese authorities reiterated their stance on strict restrictions to control coronavirus outbreaks, causing metal prices to fall.

“Over the weekend, expectations that anti-epidemic policies would be liberalized fell short of expectations, and the price fell on a limited scale to offset overly optimistic expectations,” Jinrui Futures said in a report.

“The range of fluctuation in copper prices has increased significantly recently. Short-term orders are recommended to be bought when needed and long-term strategic stock reserves are not recommended for the time being,” she added.

Poor economic data out of China on Monday also weighed on risk appetite and appetite for metals, while a firmer dollar made greenback-priced metals more expensive for holders of other currencies.

LME aluminum fell 0.1% to $2,334 per tonne, lead down 1.1% to $2,014 per tonne, zinc down 0.6% to $2,869 per tonne, while tin was down 1.7% to $19,255 per tonne ton rose.

SHFE tin rose 1.4% to 167,700 yuan/ton, nickel fell 0.4% to 192,190 yuan/ton, aluminum rose 0.6% to 18,450 yuan/ton and zinc rose 0.2% to 23,715 yuan/ton per ton.

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