LONDON – Copper prices rose to their highest level in more than two weeks on Monday, with inventories falling and a weaker dollar surging, although gains were limited due to losses in demand from top consumer China coronavirus lockdown.
The benchmark copper on the London Metal Exchange (LME) rose 1.3% to 2 9,546 per tonne at 1602 GMT. Metals used in the power and construction industries hit a record high of $ 9,558 on May 5.
Libram analyst Tom Price, referring to the lockdown, the war in Ukraine and rising demand following the rise in US interest rates, said: “The main blow has been to the metal markets, which are stabilizing.”
Even if China simplifies lockdown control and seeks to stimulate growth, the strongest period of demand for the metal – usually the second quarter – has already passed, Price said.
“The stimulus in China is now really a story for 2023.”
Copper: Copper inventory
Canceled warrants – Metals scheduled for delivery – accounted for 46% of total inventory, suggesting that more metals will be leaving the LME warehouse in the coming days.
One firm has a large number of warrants, which raises concerns about LME market availability and creates a premium for three-month copper cash deals.
Dollar: A weaker U.S. currency makes dollar-denominated products cheaper for other currency holders, which could increase demand.
Aluminum: Aluminum stock
Traders say most of this aluminum will go to Europe, where record high electricity prices have led to shortages and shortages.
Benchmark aluminum rose 0.4% to 2, 2,958 a tonne, reaching a high of 2, 2,998 since May 5.
Other metals: Zinc rose 2.1% to $ 3,786 per tonne, tin fell 0.2% to $ 34,595 and nickel fell 1% to $ 27,700. (Reporting by Pratima Desai, Editing by David Goodman)