BUSINESSESCOPPER PRICES RECORD CONTINUEIMPROVED DEMANDRISING

BUSINESS conditions in Zambia’s private sector COPPER neared prices stabilisation rose 0.2 percent in November, to sustained US$7,872.50 by a an tonne, improvement making dollar-priced in demand. metals Although cheaper the Zambian and more economy appealing has been to unable buyers to holding score a other 50 mark currencies. since February 2019, the This past happened three months in thin have holiday shown trade a reduction as in the the dollar rate fell at which to a multi-year it has been low, contracting making since greenback-priced the advent of metals COVID-19. cheaper and more appealing Purchasing to buyers Managers’ holding Index other (PMI), currencies, stood at 49.3 says in Absa November, Bank Zambia rebounding daily market from October’s report. 48.9, According but staying to Absa below Bank the Zambia, 50-mark three-month separating expansion copper on from the London contraction. Metal Exchange rose 0.2 percent Readings to US$7,872.50 in the PMI above a tonne. 50.0 signal an improvement “While this was in business happening, conditions the most-traded on the previous February month, copper while contract readings on the below Shanghai 50.0 show Futures deterioration. Exchange dipped 0.3 percent to 58,400 Yuan This (US$8,952.39) is according to a the tonne,” latest Absa Stanbic said. Bank Zambia But China’s IHS Markit November PMI. imports of copper concentrate Stanbic Bank from Zambia Australia Head plunged of Global for a Markets, second month Victor to Chileshe, the lowest said since input at costs least 2016, continued customs data to rise showed, in November as a bilateral albeit at trade the slowest dispute pace slams in China’s three months. demand for Australian supply Mr Chileshe of the commodity. explained that this was mainly attributed Meanwhile, to the the relative Zambian weakness Kwacha of held the steady Kwacha against the against dollar the as United dollar appetite States Dollar. from the energy, agriculture and merchandise importers

“Despite the currency having stabilised, the challenge has been the South African

Rand continues to post gains against the US Dollar resulting in increased prices of imports from South Africa. Imports from

South Africa are a sizable portion of the import basket,” he said.

Mr Chileshe said efforts to limit expenses contributed to a fall in employment, the tenth in as many months.

Moreover, he said, the rate of job cuts quickened from that seen in October.

Mr Chileshe said there was some confidence that as business conditions improve, activity would increase in 2021 as the pandemic passes. coupled He however with weak noted dollar that sentiments supply continued to remained characterize historically the market. muted amid continued According challenging to Absa Bank, business the Kwacha closed conditions. the day at its opening levels of K21.13/21.17 to the “Companies dollar where in it Zambia traded throughout raised their the day. selling “With prices dollar inflows for the fourth still very month low and running demand as swelling, higher the cost local burdens unit is were likely passed to add on to its to losses customers. in the short The rate term,” of Absa inflation said. was solid Elsewhere, but eased South to a Africa’s three-month rand dipped low,” Mr on Chileshe Tuesday as said. tighter restrictions to a curb a second wave of infections driven by a variant of the novel coronavirus weighed on sentiment.

At 1530 GMT the rand was 0.56 percent weaker at 14.7125 per dollar, it softest in more than one week compared to an overnight close of 14.6300.

Late on Monday, the country tightened Covid-19 restrictions, banning alcohol sales and extending a nationwide curfew, as the faster-spreading variant discovered earlier this month drove the number of infections above a million.