Copper prices climb on Chinese demand improvement
Time:Thu, 30 May 2024 10:13:23 +0800
keywords :
Copper prices rose on May 29, driven by improved demand prospects from China, the world's leading consumer of the metal. However, gains were tempered by ongoing weak physical demand and high inventories in the country.
China's recent efforts to bolster its struggling property sector have enhanced the outlook for copper demand. Major cities like Shanghai have lowered minimum downpayment ratios for home buyers and relaxed some restrictions.
The International Monetary Fund (IMF) upgraded its forecast for China's economic growth to 5% for this year, up from an earlier estimate of 4.6%, following a robust first quarter.
Despite favorable macroeconomic conditions, market analysts noted that end-users have reduced consumption due to rising prices. Copper spot market prices remain at a discount to futures prices, indicating weaker immediate demand and high output levels.
Additionally, copper stocks in SHFE warehouses are nearing a four-year peak, further capping gains. The steady U.S. dollar, influenced by expectations that the Federal Reserve will maintain interest rates, also limited copper's rise, as a stronger dollar makes dollar-priced commodities more expensive for buyers.
