Copper prices edged up after China’s central bank lowered the interest rate on its medium-term loans to support an economy jolted by disruptions to logistics and factory output due to the coronavirus outbreak.
Three-month copper on the London Metal Exchange (LME) was up 0.5 percent at $5,788 a tonne by 0216 GMT, while the most-traded copper contract on the Shanghai Futures
Exchange (ShFE) edged up 0.1 percent to 45,910 yuan ($6,582.27) a tonne.
The People’s Bank of China (PBOC) said it was lowering the rate on 200 billion yuan ($28.65 billion) worth of one-year medium-term lending facility loans to financial institutions, paving the way for a cut of the benchmark loan prime rate, due to be announced on Thursday.
The PBOC said on Saturday Chinese lenders will tolerate higher levels of bad loans to support firms hit by the epidemic, which has killed over 1,700 people and infected about 70,550 in China, where it is severely disrupting business activities.
Three-month copper on the London Metal Exchange (LME) was up as much as 1.2 percent at $5,828.50 a ton, its highest since Jan. 27, while the most-traded copper contract on the Shanghai Futures Exchange (ShFE) edged up 0.4 percent to 46,070 yuan ($6,604.07) a ton, as of 0503 GMT. — Reuters
