https://www.miningweekly.com

Copper rises on hopes for improved Chinese demand

18th August 2022

By: Reuters

  

Font size: - +

LONDON - Copper prices rose on Thursday for the first time in a week as hopes for solid demand in China offset fears about the pace of interest rate rises and slowing economic growth.

Global stock markets fell after US and European central bank officials said inflation pressures were not easing, suggesting interest rates will continue to increase. 

But in China, the biggest metals consumer, the central bank is easing monetary policy, copper stockpiles are low and import premiums suggest demand is rising.

Benchmark copper CMCU3 on the London Metal Exchange (LME) was up 1.3% at $8 028 a tonne at 11:49 GMT.

Prices of the metal used in the power and construction industries fell from a record high of $10 845 a tonne in March as low as $6 955 in July.

Low inventories and hopes for Chinese demand should put a floor under prices, said independent analyst Robin Bhar. "China's the key," he said, predicting copper would end 2022 around $7 500 a tonne.

Yangshan copper import premiums have risen to $102.50 a tonne, the highest since December and up from just $6.50 earlier this year. 

Increased Chinese infrastructure spending and support for the property sector should help metals but "the upside looks limited", said analysts at ANZ.

Closures were announced this week at a zinc smelter and an aluminium smelter in Europe due to sky-high energy prices. 

For zinc, analysts at Citi forecast deficits in the roughly 14-million tonne a year market of 197 000 tonnes this year and 190 000 tonnes in 2023 and said prices should reach $3,800 within three months.

LME zinc CMZN3 was down 0.6% on Thursday at $3 491 a tonne.

Chinese aluminium production has risen to record levels, helping China's aluminium imports to fall 38% year-on-year in July. 

LME aluminium CMAL3 was down 0.2% at $2 406.50 a tonne.

Edited by Reuters

Comments

The functionality you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION