Copper price hits 2-week high as China further eases covid curbs

Copper price rose to the highest in two weeks on Tuesday as China announced a major step towards further easing of its covid containment policy.

China will stop requiring inbound travelers to go into quarantine starting from Jan. 8, moving further away from a strict “zero-covid” policy that has curbed industrial activity and domestic demand.

Copper for delivery in March rose 3.7% on the Comex market in New York, touching $3.94 per pound or $8,668 per tonne.

[Click here for an interactive chart of copper prices]

The most-traded February copper contract on the Shanghai Futures Exchange rose as much as 1.3% to 66,660 yuan ($9,576.21) a tonne in early trade, its strongest since Dec. 14.

“Overall, the current macro environment is relatively favorable for copper prices,” Huatai Futures analysts wrote in a note.

Supply concerns could keep traders cautious, analysts said, as customs clearance in Shanghai has slowed down due to rising COVID case numbers.

(With files from Reuters)