London copper and other industrial metals rose on Tuesday after a sharp fall in the previous session, as a slight pullback in the US dollar and hopes for more economic stimulus from top consumer China underpinned prices.
Benchmark three-month copper on the London Metal Exchange (LME) was up 1.9 percent at $9,957 a ton, after falling to its lowest since Feb. 9 on Monday. The most-active May copper contract on the Shanghai Futures Exchange eased 0.6 percent to 73,600 yuan ($11,258.47).
LME aluminum gained 1.2 percent to $3,127 a ton after dropping to its lowest since Feb. 4 in the previous session.
“Prices are stabilizing from yesterday’s fall as the PBoC (People’s Bank of China) vowed to announce more policy support,” said ANZ analyst SoniKumari, adding concern about China’s economic growth remained the key drag.
“The COVID-19 situation is weakening demand for metals, but against the current supply backdrop, recent fall looks overdone.”
Easing some concerns about demand outlook due to continued lockdowns in the world’s second-biggest economy, China’s central bank said it would step up prudent monetary policy support to the real economy.
