BUUMBA CHIMBULU writes
COPPER prices rose to their highest in nearly three months on Tuesday as stronger manufacturing data from top consumer China and the loosening of lockdowns imposed to contain Covid-19 fuelled expectations of healthier demand.
Prices for the red metal rose to their highest in nearly three months on Tuesday, as demand in top metals consumer China continued to recover, says Absa Bank Zambia.
The Bank, however, indicated in its market report that the gains were stopped by investor worries over the deepening United States-China rift.
“The most-traded July copper contract on the Shanghai Futures Exchange (ShFE) rose 0.9 percent to 44,660 Yuan (US$6,274.94) a tonne.
“Earlier in the session, the contract hit its highest since March 6 of 44,800 Yuan. Three-month copper on the London Metal Exchange (LME) eased 0.3 percent to US$5,470 a tonne on Tuesday, but gained nearly 26 percent since the 2020 bottom hit on March 19,” Absa said.
On Monday, Copper prices rose as United States President, Donald Trump’s response to a China’s security legislation on Hong Kong was not as severe as the market had expected.
Mr Trump on Friday ordered the process of eliminating special United States treatment for Hong Kong but did not mention any action that would undermine the U.S.-China Phase one trade deal.
Three-month copper on the London Metal Exchange climbed 1.2 percent to US$5,440 a tonne, while the most-traded July copper contract on the Shanghai Futures Exchange jumped 1.4 percent to 44,400 Yuan (US$6,241.65) a tonne.
