Copper prices rebounded on Friday, breaking three days of losses on hopes for a recovery in China from tough covid-19 lockdowns.
Copper for delivery in July rose 1.36% from Thursday’s settlement price, touching $4.31 per pound ($9,488 per tonne) midday Friday on the Comex market in New York.
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The most-traded July copper contract on the Shanghai Futures Exchange ended daytime trade 1% higher at 71,900 yuan ($10,677.64) a tonne.
Shanghai took more gradual steps on Friday towards lifting its covid-19 lockdown while Chinese equities gained on hopes for additional stimulus measures.
“The Chinese authorities are moving quite cautiously on stimulus. I think things will have to get a bit worse (to see major stimulus),” said Caroline Bain, chief commodities economist at Capital Economics.
“While Chinese covid restrictions are likely to be lifted in coming months, developed economics are set for weaker growth.”
“The combination of subdued growth in China and a slowdown in the US and Europe means that prices have further to fall,” she said, adding that her year-end price target for copper is $9,000.
Supporting the metals market was a softer dollar index, which sank to a one-month low as traders lowered Federal Reserve rate hike expectations.
(With files from Reuters)