LONDON- Copper prices shot up by nearly 4 percent on Wednesday on relief that China’s debt-burdened Evergrande would pay interest on a domestic bond, easing fears the property giant’s troubles might hit the global economy.
Three-month copper on the London Metal Exchange had climbed 3.9 percent to $9,322 a ton, reversing losses from the previous session when the contract went as low as $8,810 a ton, its weakest since Aug. 19.
Evergrande agreed to settle interest payments on a domestic bond on Wednesday, while the Chinese central bank injected cash into the banking system.
“That heartened markets for the time being and we’re running into some dip buying.
Consumers are probably running short of inventory, so these prices may prompt restocking,” said independent consultant Robin Bhar.
“I think the consensus is that this is not China’s Lehman moment. When it comes to China, everyone owns part of the problem and at the end of the day, it’s all part of China PLC. They’re not going to let it disrupt the economy.” — Reuters
