BEIJING- Copper prices rebounded on Monday after posting three consecutive weekly losses, lifted by better sentiment as China’s central bank vowed to resolve local government debt risks, while low stocks also lent some supports.
Three-month copper on the London Metal Exchange was up 0.2 percent to $8,260 per metric ton and the most-traded September copper contract on the Shanghai Futures Exchange added 0.2 percent to 68,440 yuan ($9,371.36) per metric ton.
Financial departments should coordinate support to resolve local debt risks, enrich tools to prevent and resolve debt risks, strengthen risk monitoring and firmly hold the line on avoiding systemic risk, China’s central bank said in a statement on Sunday.
Debt-laden municipalities represent a major risk to China’s economy and financial stability, economists say, after years of over-investment in infrastructure, plummeting returns from land sales and soaring costs to contain COVID-19.
On Monday, China cut its one-year benchmark lending rate, as expected, as authorities seek to ramp up efforts to stimulate credit demand, but surprised markets by keeping the five-year rate unchanged.
Sighs of supply tightness also weighed on the market.
Copper stocks on SHFE fell 25.9 percent on-week last Friday to 39,228 tons, the lowest since September 2022. – Reuters
LME aluminum gained 0.2 percent at $2,142 a metric ton, tin climbed 0.6 percent to $25,420, zinc added 0.3 percent to $2,306, nickel nudged 0.1 percent up to $20,150, while lead slid 0.3 percent to $2,144. – Reuters
