Market News
Copper Lures Buyers as New York Futures Hover Above $4 a Pound - BLOOMBERG
(Bloomberg) -- Copper futures edged higher in London and New York as tentative signs of buying interest emerged following a string of losses sparked by growing worries about the strength of global demand.
New York futures were up about 1% at $4.065 a pound as the US trading session got underway Friday, bouncing back from losses that earlier took prices close to the psychological support level of $4. Copper also rose on the London Metal Exchange, as analysts pointed to renewed buying appetite in China.
“Lower prices have boosted demand in China,” Dan Smith, head of research at Amalgamated Metal Trading Ltd., said by email. “While the broader narrative for China is quite negative, fundamentals are giving the market a lift.”
Copper fell more than 10% in the final quarter of 2024, with initial optimism about a raft of Chinese stimulus measures giving way to mounting anxiety about demand in the world’s top commodities consumer. A slump in China’s currency has heaped further pressure on metals by eroding buyer power for importing manufacturers.
It’s unlikely that policymakers will implement any major announcements that could help boost sentiment until the annual, so-called Two Sessions legislative meeting in March.
Traders will be looking to that meeting for more concrete details on how China will boost its property sector, with hints given for more support during last month’s Central Economic Work Conference. They’ll also be bracing for the potential impact of fresh tariffs from the US after Donald Trump’s inauguration this month.
Copper was 0.8% higher at $8,876.50 a ton as of 4:35 p.m. local time on the London Metal Exchange, extending a rebound from a nine-month low seen at the close of trading Dec. 31. Aluminum, zinc and lead were lower, while nickel and tin rose.
--With assistance from Katharine Gemmell.
