Copper price rose on Thursday as hopes for improved demand in China offset fears about the pace of interest rate rises and slowing economic growth.
China’s central bank is easing monetary policy, while copper stockpiles are low and import premiums suggest demand is rising.
Copper for delivery in September rose 2.2% 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]
Low inventories and hopes for Chinese demand should put a floor under prices, said independent analyst Robin Bhar. “China’s the key,” he said, predicting copper would end 2022 at around $7,500 a tonne.
Yangshan copper import premiums have risen to $102.50 a tonne, the highest since December and up from just $6.50 earlier this year.
Increased Chinese infrastructure spending and support for the property sector should help metals but “the upside looks limited”, said analysts at ANZ.
(With files from Reuters)