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Shanghai copper scales over 1-month peak

by Carl Steward
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forexinsider24.com – Todays Stock : U.S copper deposits have drawn more than $1.1 billion in investmentsShanghai copper scales over 1-month peak

China’s copper prices climbed to their highest level in more than a month on Friday, boosted by anticipation for more stimulus measures from the world’s largest metals consumer China and concerns about low supply due to the Ukraine situation.

As of 0532 GMT, the most-active May copper contract on the Shanghai Futures Exchange (SCFcv1) was up 1.2 percent at 74,820 yuan ($11,744.21) a tonne, following reaching a high of 74,980 yuan ($11,769.32) earlier in the day. So far this week, the contract is up 1.7 percent. The London Metal Exchange was closed for the day due to a holiday.

The likelihood of a Chinese cycle easing is helping the rise in commodities prices. The Chilean Copper Commission boosted its forecast for 2022 copper prices to $4.40 per pound on Thursday, citing expected scarcity due to the Russia-Ukraine conflict.

Despite Beijing’s need for more significant monetary stimulus to cushion an economic downturn caused by a new COVID-19 epidemic, China’s central bank held borrowing costs on its medium-term policy loan steady.

China will increase financial support for the real economy, particularly for industries and small businesses affected by the pandemic, and cut financing costs, the cabinet, or State Council, stated this week.

This year, copper stocks in LME-approved warehouses (MCUSTX-TOTAL) are down 17%. According to the most recent LME data, they increased by 3,675 tonnes to 110,675 tonnes. Even though the war in Ukraine was still raging, the Russia-invading-Ukraine geopolitical spike was already dissipating as quickly as it had risen. Gold fell 6.6 percent to $1,916 over the next week. Heavy selling of gold futures was to blame, as speculators quickly unwound their overly exuberant wagers.

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