Home NewsCommodities News Copper rate: Copper retreats as China COVID worries dampen stimulus hopes

Copper rate: Copper retreats as China COVID worries dampen stimulus hopes

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Copper rate: Copper retreats as China COVID worries dampen stimulus hopes

Copper prices in London retreated on Friday and were on track for a fifth straight weekly loss, as worries over China’s restrictions on COVID-19 outweighed stimulus hopes for the top metal consumer.

Three-month copper on the London Metal Exchange was down 0.5% at $7,780 a tonne by 0428 GMT.

On the Shanghai Futures Exchange, the most-traded August copper contract closed up 1.2 percent at 58,940 yuan ($8,787.83) a tonne in early trade, off a session high of 60,540 yuan.

Copper prices rose sharply on Thursday after Bloomberg reported that China is considering allowing local governments to issue $220 billion in special bonds in the second half of this year to boost infrastructure financing.

Tapas Strickland, economist at National Australia Bank, said: “While Chinese policymakers are considering more stimulus, the downside of COVID-19 restrictions is that China is still implementing a zero-COVID policy. The factors are still there.”

Analysts said COVID-19 restrictions could slow the pace of infrastructure projects.

LME copper has fallen more than 3 percent so far this week as mounting concerns over a global recession dampening demand for the metal weighed on the market.

China: Premier Li Keqiang was quoted by Chinese state media on Thursday as saying that China’s economy is rebounding but more efforts are needed to support the recovery.

CODELCO: Chile’s state-owned Codelco, the world’s largest copper producer, will start construction this year on a long-delayed $1 billion desalination plant to supply its largest operation in northern Chile.

SHANGHAI: Shanghai reopened most cinemas on Friday, sticking to a plan to gradually resume daily activities after lifting a two-month COVID-19 lockdown in June.

Prices: LME aluminium slipped 0.3% to $2,435 a tonne, zinc fell 0.4% to $3,097.50, lead dipped 1.7% to $1,938.50 and tin dipped 1.9% to $25,500.

Shanghai aluminum was up 0.8 percent, zinc was up 1.8 percent, but nickel was down 1.5 percent, lead was down 1.2 percent and tin was up 0.2 percent.

(1 USD = 6.7070 RMB)

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