Copper selling at 9,500.35 USD per tonne as at June 1, 2022
After a period of uncertainty on the international market, copper is on the rise again at the start of June 2022.
According to the London Metal Exchange (LME), as of June 1, 2022, a tonne of copper is selling at 9,500.35 USD compared to 9,201.70 USD per tonne in the last week of May 2022.
Analysts said prices of industrial metals, particularly aluminium, copper and zinc, rallied at the end of last week on the London Metal Exchange (LME), supported by a weaker dollar and the mitigation of sanitary measures in China.
However, this recovery is still extremely fragile if we judge by the multiple profit-taking that took place from Tuesday May 31, 2022, particularly on the copper market.
Prices were also supported by the upcoming easing of coronavirus restrictions in Shanghai and the weakness of the US dollar.
At the start of the week, copper surged to a level not seen in over two (2) weeks.
Note that prices are taking into account bearish factors and have entered a phase of consolidation, underlined Tom Price, analyst at Liberum, referring to the surge in demand after the lifting of confinements, the war in Ukraine and the rise in interest rates. of American interest.
Even if China eases its health restrictions and tries to revive growth, the strongest period in terms of demand, that is to say the second quarter, is over, adds the analyst.
According to these experts in the field, the Chinese stimulus measures will bear fruit in 2023.
At the same time, copper stocks in LME warehouses have fallen, and totaled 171,075 tonnes at the start of the week, of which 46% are canceled warrants (metal ready for delivery), which suggests that stocks should fall further in the coming days. coming.
For the record, between early March and mid-May 2022, copper fell by almost 15%, undermined by fears of a slowdown in Chinese demand on the one hand, and a global recession on the other. .
The reasons mentioned by the various experts in this market may in particular allow the Democratic Republic of Congo, one of the main producing countries of these metals, to consolidate its economic performance on its own resources.
