Copper gains on short covering after prices dropped on concerns about weak demand.
Copper yesterday settled up by 0.41% at 742.2 after prices dropped on concerns about weak demand. Investors remained underwhelmed by purchasing activity from Chinese manufacturers after the country’s reopening. The Yanghsan copper premium has more than halved since mid-March to $23 per tonne, indicating supplies were ample amid muted demand for physical deliveries. In the meantime, slow growth in the United States and expectations of tighter policy by the Fed hurt projections of stateside demand. Keeping a floor under the prices, data from the London Metal Exchange showed inventories decreased to 56,000 tonnes, the lowest since 2005.
