Industrial metal prices rose on Monday on Chinese regulators’ latest effort to avert a potential crisis in the country’s real estate market, which consumes a vast amount of metals.
Three-month copper on the London Metal Exchange rose 1.7 percent to $7,131.50 a ton, rebounding from its lowest since November 2020 of $6,955 a ton hit in the previous session.
The most-traded August copper contract on the Shanghai Futures Exchange advanced 2.6 percent to 56,040 yuan ($8,306.41) a ton.
ShFE tin climbed 4.7 percent to 195,070 yuan a ton, zinc added 3.5 percent to 22,650 yuan a ton, lead was up 3.3 percent at 14,995 yuan a ton and aluminum rose 2.3 percent to 17,685 yuan a ton.
LME aluminum climbed 0.8 percent to $2,361.50 a ton and zinc CMZN3 advanced 2.3 percent to $2,982 a ton.
Chinese regulators encouraged lenders to extend loans to qualified real estate projects to ease risks from a widening mortgage-payment boycott on unfinished houses, which helped property and bank stocks recover some recent losses.
“(Metals prices falling) was a risk-off pull back due to the fear of more developers going under. Developers in China are having a relief rally… so the construction project cliff is averted for now,” said a trader.
Easing of a red-hot rally in dollar also helped metal prices, which are traded in the US currency on the LME.
Global miner BHP Billiton is likely to reconsider its investment plans in top copper producer Chile if the government moves ahead with mining tax hikes, according to a report on Sunday.
CMOC’s TenkeFungurume copper and cobalt mine has suspended all exports, logistics companies were told in a notice seen by Reuters late on Saturday, complying with demands by a court-appointed administrator.
