keywords :
Copper prices rose on Thursday as a slight pullback in the U.S. dollar and economic support measures in China offered some respite after heightened recession fears sent the metal to its lowest in nearly 20 months.
Three-month copper on the London Metal Exchange (LME) was up 2.1% at $7,681 a tonne by 0705 GMT, having touched $7,291.50 on Wednesday for its lowest since November 2020.
The most-traded August copper contract in Shanghai ended daytime trading 1.4% up at 58,640 yuan ($8,747.80) a tonne.
“We are seeing something of a softening trend in the U.S. dollar index and a bit of short-covering after a broad-based sell-off in commodities,” said Kunal Shah, head of research at Nirmal Bang Commodities.
“Overall, the sentiment is still bearish because global growth is faltering. There are supply disruptions, but demand destruction is far bigger than the supply concerns, hence we are going to see further downside.”
The dollar slipped 0.2% after scaling a 20-year peak against its rivals, making greenback-denominated metals slightly less expensive for holders of other currencies.
SUPPORT: China on Thursday announced a raft of new steps to spur consumer demand for cars, saying it would consider extending a tax break on electric vehicles and build more charging stations.
GROWTH: The head of International Monetary Fund, Kristalina Georgieva, said the global economy outlook had “darkened significantly” since April and she could not rule out a possible global recession next year given the elevated risks.
INTEREST RATES: Central banks around the world are raising interest rates sharply to rein in soaring inflation, restraining economic growth.
PERU: Copper output in Peru fell 11.2% in May from a year earlier, the Energy and Mines Ministry said, after a stoppage at the Las Bambas mine and lower-quality production in other deposits.
OTHER METALS: LME aluminium was steady at $2,409.50 a tonne, zinc gained 2% to $3,058.50, lead rose 1% to $1,988.50, nickel eased 0.5% to $21,750 and tin was up 1.2% at $25,010.
Shanghai aluminium rose 0.8%, zinc climbed 3%, nickel eased 0.1%, lead rose 1.2% and tin gained 0.8%.