Copper scales over 1-month peak on stimulus plans

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Copper prices in China rose to their highest in over a month, bolstered by hopes for more stimulus measures by top metals consumer China and worries over tight supply amid the Ukraine crisis.

The most-active May copper contract on the Shanghai Futures Exchange ended daytime trading 1.4 percent higher at 74,970 yuan ($11,768.68) a ton, after rising to its highest since March 8 at 75,100 yuan ($11,789.08) earlier in the session.

The contract is up 1.4 percent this week, its second consecutive weekly gain. The London Metal Exchange was closed for a holiday.

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“The prospect of easing cycle in China is supporting the bounce in commodity prices,” said Stephen Innes, managing partner at SPI Asset Management.

“Also Ukraine situation is escalating, which could trim some commodities either via logistics or sanctions, keeping the market tight.”

The Chilean Copper Commission on Thursday raised its projection for 2022 copper prices to $4.40 per pound, amid a perceived scarcity due to the Russia-Ukraine conflict.

China’s central bank kept borrowing costs of its medium-term policy loan unchanged, despite Beijing calling for more monetary stimulus to cushion an economic slowdown caused by new COVID-19 outbreak.

China will step up financial support for the real economy, especially industries and small firms hit by the pandemic, and will lower financing costs, the cabinet, or State Council, said in a statement this week.

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