Shanghai copper prices rose on Thursday as the lifting of COVID-19 curbs in top metals consumer China buoyed hopes of demand recovery, although a stronger US dollar limited the upside.
The most-traded July copper contract in Shanghai ended daytime trading up 0.7 percent at 72,130 yuan ($10,803.56) a ton, in tepid trade as the London Metal Exchange was shut for a public holiday.
Shanghai sprung back to life after two months of bitter isolation under a ruthless COVID-19 lockdown, with shops reopening and people going back to offices, parks and markets, hoping to never go through a similar ordeal again.
“Shanghai has reopened after months of coronavirus lockdown. Though it might take weeks of recovery until economic activity bounces back, the move offers some optimism for China, the largest consumer of copper,” said Jigar Trivedi, a commodities analyst at Mumbai-based broker AnandRathi Shares.
“The dollar has gained momentum, but factory activity in China has improved a bit from last month, hence, copper may stay elevated,” he said.
Limiting gains, the dollar hit a three-week high against the yen in early trade and was holding firm against other majors, supported by rising US Treasury yields.
