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Copper price rebounds on weaker dollar

Image: Glencore via Instagram.

The copper price bounced on Tuesday after four sessions of losses as the dollar weakened.

Copper for delivery in December rose 2.5% on the Comex market in New York, touching $3.66 per pound ($8,052 per tonne).

[Click here for an interactive chart of copper prices]

“The dollar is soft, yields are lower and that’s supporting the general level of risk appetite in the market,” said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.

Copper retreated in recent days driven by worries about possible pandemic-related shutdowns in China.

China’s capital Beijing shut parks and museums on Tuesday and imposed new testing requirements to enter public places such as malls and hotels as covid-19 cases climbed.

“The market seems to be taking the view that the Chinese outbreak is a temporary one, but one that could last longer than expected, so that’s keeping a lid on any exuberance,” Hansen added.

“A surge in cases during winter will likely test the resolve of officials. Fears of supply disruptions also eased after BHP averted a strike at its Escondida copper mine in Chile,” ANZ Research said in a note.

On the supply side, BHP said on Monday it reached an agreement with a worker’s union to avoid a strike planned at Escondida – the world’s largest copper mine.

(With files from Reuters)


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