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By Mai Nguyen
Dec 6 (Reuters) – Copper prices in London advanced on Tuesday as hopes grew that demand will rebound in top consumer China after more cities eased COVID-19 restrictions.
Three-month copper on the London Metal Exchange CMCU3 rose 0.2% to $8,404 a tonne by 0546 GMT, while the most-traded January copper contract on the Shanghai Futures Exchange SCFcv1 edged down 0.6% to 65,850 yuan ($9,433.42) a tonne.
China’s capital Beijing dropped the need for people to show negative COVID tests to enter supermarkets and offices, the latest in an easing of curbs across the country following last month’s historic protests.
The country may announce 10 new COVID-easing measures as early as Wednesday, sources said, supplementing the 20 unveiled in November that set off a wave of relaxations nationwide.
Easing restrictions are supportive to copper prices, said ANZ analysts in a note.
“The market has shrugged off signs of weakness in the physical market,” they added.
Yangshan copper premium SMM-CUYP-CN fell to its lowest since July 22 at $72.50 a tonne on Monday, indicating weakening demand for imported copper into China.
Withdrawals of copper inventories have also been slowing across the LME, SHFE and Chinese bonded warehouses. SHFE copper inventories CU-STX-SGH were at 65,226 tonnes on Friday, more than double the level seen at the end of September.
A steady dollar, which makes greenback-priced commodities expensive to holders of other currencies, also capped the gains in metals prices.
LME aluminium CMAL3 fell 0.3% to $2,516 a tonne, zinc CMZN3 eased 0.2% to $3,119.50 a tonne, lead CMPB3 was down 0.7% at $2,222.50 a tonne and tin CMSN3 dropped 1% to $24,200 a tonne.
SHFE nickel SNIcv1 rose 1.3% to 207,590 yuan a tonne, tin SSNcv1 jumped 2.6% to 195,290 yuan a tonne, lead SPBcv1 edged up 0.1% to 15,945 yuan a tonne and aluminium SAFcv1 fell 0.3% to 19,205 yuan a tonne.
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($1 = 6.9805 yuan)
(Reporting by Mai Nguyen in Hanoi; Editing by Subhranshu Sahu)
((mai.nguyen@thomsonreuters.com; Reuters Messaging: mai.nguyen.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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