LONDON- Copper prices rose on Tuesday after monetary policy easing by China’s central bank and climbing imports into the world’s top metals consumer.
The People’s Bank of China on Monday said it would cut the amount of cash that banks must hold as reserves, releasing the funds in long-term liquidity to bolster slowing economic growth.
“China’s policy easing has sparked optimism. Meanwhile, we have probably seen the worst in the property market,” said ING analyst Wenyu Yao. The property sector is a major consumer of copper.
China’s copper imports rose for a third straight month in November, customs data showed, hitting their highest since March as demand rose after the easing of a power crunch that had dented industrial production.
Benchmark three-month copper on the London Metal Exchange (LME) added 0.6 percent to $9,562 a ton by 1720 GMT.
“Given that this is just one month’s data, and that other indicators point to a further softening in demand from commodity end-users, we are sceptical,” Capital Economics analysts said. — Reuters
