Copper prices on Thursday climbed to their strongest in two weeks, supported by a weaker dollar and signs that top metals consumer China was shifting away from its stringent COVID-19 curbs policy.
Three-month copper on the London Metal Exchange rose as much as 1.5 percent to $8,363 a ton during Asian trading, its highest since Nov. 16, extending gains to a third session. It was up 0.7 percent at $8,297.
On the Shanghai Futures Exchange, the most-traded January copper contract ended morning trade up 1.5 percent at 65,780 yuan ($9,301.34) a ton. Earlier in the session, it hit 66,050 yuan, its loftiest since Nov. 18.
Easing of Covid curbs in big Chinese cities like Guangzhou and Chongqing helped, with investors shrugging off data showing a contraction in China’s factory activity in November.
“We believe that Chinese authorities are shifting to a ‘living with COVID’ stance, as reflected in new rules that allow people to do ‘home isolation’ instead of being ferried away to quarantine facilities,” ANZ analysts said.
The dollar index extended Wednesday’s more than 1 percent drop, dipping as low as 105.69 on Thursday, making greenback-priced metals cheaper for buyers using other currencies. – Reuters
