Copper price regains ground to $ 9,196 per tonne

The price of copper regained ground on Monday after hitting a  two-month low on Friday.  Copper for July delivery was up 0.6% from Friday’s settlement price, reaching $ 4.18 per pound ($ 9,196 per tonne) at noon Monday in the New York Comex market.

The metal’s price collapsed on Friday, under pressure from plans to sell off reserves from China and a firm dollar backed by the prospect of rising US interest rates.

The Chinese strategic storer’s pledge to release inventory was a serious sign of Beijing’s willingness to cut prices, as was a warning to state-owned enterprises to reduce their exposure to foreign commodity markets.

But even as expected sales to end users boost domestic supply, investors have questioned China’s ability to have a lasting impact.

“We don’t think the rally is over,” Citigroup Inc. analysts said in an emailed note.

According to the bank, Beijing’s measures “aim to manage expectations and deter speculators rather than resolve supply / demand imbalances.”

With stocks low, it is likely that investors will embrace the price cuts, rekindling the recovery in the coming months, Citi said.

Exports

China’s copper exports rose for a third consecutive month in May to reach their highest level since March of last year, customs data showed on Friday, as rising international prices encouraged traders to ship. more metal abroad.

China is the world’s largest consumer of copper and rarely exports large quantities.

However, last month’s surge in copper prices on the London Metal Exchange to an all-time high not only made imports less favorable for China, but also spurred shipments in the other direction.

Exports of raw copper and copper products amounted to 79,044 tonnes last month, up 3.4 percent from April and 67.7 percent year-on-year.