Copper is poised for its first weekly rise in seven because China has eased covid control

Article content

London copper prices were set at 7 for their first weekly profit on Friday, as top metal consumers expected a recovery in demand by easing COVID-19 restrictions in China, while a weaker US dollar gave further support.

Fundamentals

* On the London Metal Exchange (LME) benchmark copper fell 0.4% to 9,377.50 per tonne, after gaining 2% in the previous session, according to 0203 GMT. The contract has risen 2.4% so far this week.

* The most active June copper contract on the Shanghai Futures Exchange rose 0.5% to 71,710 yuan ($ 10,655.91) per tonne.

Article content

* More Shanghai residents were given the freedom to shop for groceries for the first time in almost two months on Thursday as authorities made further plans to exit the citywide COVID-19 lockdown more completely.

* The US dollar moved to its worst week since the beginning of February against major peers on Friday, with Treasury yields and fatigue declines after a 10-week rise in the currency, 14%.

* A weaker dollar makes greenback-formatted metals less expensive for buyers using other currencies.

* The US Federal Reserve will raise interest rates higher than expected just a month ago by the end of this year, saving the already-significant risk of a recession, according to a Reuters survey of economists.

Article content

* The Peruvian prime minister on Thursday failed to reach an agreement with the indigenous community to allow MMG Ltd to resume operations at the Las Bambas copper mine, the government’s fourth failed negotiation attempt.

* China cut its benchmark reference rate for mortgages in the expected-expected interval in its May fixing on Friday, the second decline this year, as Beijing seeks to revive credit demand to boost the economy.

* For top news of metals and other news, or click

Market news

* Asian stocks jumped in early trade on Friday after China cut a key debt benchmark to support a slowing economy, but global equities remain a gauge for its longest weekly losing streak on record amid investor concerns over slower growth.

Price

Three months LME copper

The most active is ShFE copper

Three months LME aluminum

The most active is ShFE aluminum

Three months LME Zinc

The most active is ShFE Zinc

Three month LME lead

The most active ShFE lead

LME nickel for three months

The most active is ShFE nickel

Three-month-old LME tin

Most Active ShFE Tin ($ 1 = 6.7296 Chinese Yuan) (Report by Brijesh Patel in Bangalore; Edited by Shuvrangshu Sahu)