Copper prices rise after last week's slump with China liquidity injection
LONDON - Copper prices rose in London on Monday, as a liquidity injection by China's central bank, the People's Bank of China, came as a sign of support to the Chinese economy and helped the metal recover from a five-month low hit last week.
Benchmark copper CMCU3 on the London Metal Exchange (LME) was up 0.7% at $8 314/t by 10:00 GMT.
The metal had touched $8,136.50 on Friday, its lowest since November 30, amid concerns about demand from top consumer China and selling by momentum-based funds.
"We are seeing a marginal rebound in base metal sentiment followed last week's sustained weakness," said Arthur Parish, metals associate at SP Angel.
"Several signs of optimism are developing from China, with today's PBOC liquidity injection likely driving the short-term recovery in prices. Copper demand remains muted and inventory levels are high," he added.
Along with the liquidity injection by the PBOC, there is also "some bargain hunting following last week's weakness" in metals, Julius Baer analyst Carsten Menke said.
The U.S. dollar fell from a five-week high on Monday, making dollar-denominated metals more attractive to buyers holding other currencies.
China, whose demand has so far failed to meet the optimism after Beijing lifted Covid-19 curbs in early 2023, is due to report monthly industrial production and retail sales on Tuesday.
The country is likely to import more refined copper later this year, according to a senior analyst at trading house Trafigura said.
LME aluminium CMAL3 was up 1.7% at $2 268.5 a tonne after the on-warrant stocks in the LME-registered warehouses declined to 373 025 tonnes, their fresh three-month low.
In other metals, zinc CMZN3 rose 0.8% to $2 570, lead CMPB3 added 0.4% to $2,085, tin CMSN3 was up 1.5% to $25 195, while nickel CMNI3 added 0.2% to $22 250.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...
VISIT SHOWROOM
Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
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?
Receive 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)
➕
Recieve 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
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
