METALS-Copper prices set for second quarterly gain on China demand

Kitco Media
By Reuters
Published:
Updated:
Reuters
March 31 (Reuters) - Copper prices were on track for their second straight quarterly gain on Friday, lifted by an improvement in demand from top consumer China after the country removed its stringent COVID-19 restrictions. Three-month copper on the London Metal Exchange was up 0.2% at $9,015 a tonne, as of 0221 GMT, and has gained 7.7% so far this quarter. The most-traded May copper contract on the Shanghai Futures Exchange eased 0.3% to 69,490 yuan ($10,139.20) a tonne, but climbed 5.2% so far this quarter. China's removal of its COVID-19 restrictions last December raised hopes that demand for copper will improve as the country revived its economic activities. Copper prices shot up early-January, but delays in demand improvement put a lid on a rally until March when consumption returned with the peak season and boosted LME copper prices by about $1,000 in just two weeks to around $9,000 a tonne. A weaker dollar in the second half of March made greenback-priced metals cheaper to holders of other currencies. Nickel trading, on the other hand, has been dampened by fraud and LME trading limit and review. Nickel fell the most across base metals in the first three months of 2023, with the LME three-month contract down 22.8% so far this year, and the most-traded SHFE contract shedding 20.1% in the same period. So far this quarter, LME aluminium edged up 0.6%, and zinc dipped 1% in the same period, while lead lost 6.9% and tin rose 5%. SHFE aluminium edged higher 0.2% so far this quarter, zinc lost 3.9% during the same period, lead fell 4.3% and tin dipped 0.4% in the quarter. For the top stories in metals and other news, click or DATA/EVENTS (GMT) 0600 UK GDP QQ, YY Q4 0600 UK Nationwide house price MM, YY March 0645 France CPI (EU Norm) Prelim YY March 0645 France Producer Prices YY Feb 0755 Germany Unemployment Rate, Chg SA March 0900 EU HICP Flash YY March 0900 EU HICP-X F, E, A, T Flash MM, YY March 0900 EU Unemployment Rate Feb 1230 US Consumption, Adjusted MM Feb 1230 US Core PCE Price Index MM, YY Feb 1230 US PCE Price Index MM, YY Feb 1400 US U Mich Sentiment Final March
($1 = 6.8536 yuan) (Reporting by Mai Nguyen in Hanoi; Editing by Sherry Jacob-Phillips)

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