May 12, 2022 source: Changjiang nonferrous metals network publisher: tongwj University, middle school

Abstract: copper prices rebounded on Wednesday because the slowdown in covid-19 infection in China, a major metal consumer, eased recent demand concerns, although the continued pandemic related blockade put pressure on market sentiment.

Copper prices rebounded on Wednesday as the slowdown in covid-19 infection in China, a major metal consumer, eased recent demand concerns, although market sentiment was pressured by the continued pandemic related blockade.

Copper for July delivery rose 2.3% from Tuesday’s settlement price, hitting $4.25 per pound ($9350 per ton) on the Comex market in New York at noon on Wednesday.

The most active June copper contract on the Shanghai Futures Exchange rose 0.3% to 71641 yuan ($10666.42).

Shanghai said that half of the cities had achieved the status of “zero new crown”, but strict restrictions must be maintained according to national policies.

China’s blockade measures and concerns about radical interest rate hikes in the United States this year put pressure on base metals, and copper prices hit their lowest level in nearly eight months on Monday.

Reuters columnist Andy home wrote: “hedge funds are increasingly bearish on the copper market at a time when there is increasing evidence that global manufacturing activity is beginning to stagnate.”

“For the first time since May 2020, the number of short positions in CME copper contracts exceeded that of long positions, when copper prices had just begun to recover from the first wave of covid-19 blockade.”

On the supply side, the Peruvian government failed to reach an agreement with a group of indigenous communities on Tuesday. Their protests have stopped the operation of the large Las bambas copper mine of MMG Ltd.