Copper price recovers from fresh 11-month low

LONDON — Copper rebounded on Friday from a fresh 11-month low, as some investors regard the recent sharp losses as exaggerated and believe the metal has hit bottom.

Copper, widely viewed as a bellwether for the global economy, has been battered by escalating trade tensions that resulted in the US imposing tariffs on $34 billion of Chinese imports and Beijing quickly retaliating.

The recent downtrend — which has seen copper shed 14% since touching a four- andahalf- year peak of $ 7,348 in early June — was fueled by computer- driven speculators and long liquidation by Chinese hedge funds, said Gianclaudio Torlizzi, Partner at consultancy T- Commodity in Milan.

“Many people are wondering if the long- term bull market is over. I don’t think it’s over but copper has to hold above $6,200, which is the watershed level for the long-term uptrend,” Mr. Torlizzi said.

“It doesn’t make any sense to have such a gloomy sentiment on metals demand. This is a good opportunity to go long again,” he added, saying he had already taken a long position.

Three- month copper on the London Metal Exchange ( LME) fell as much as 2% to $ 6,221.50 a ton, its lowest since July 25, 2017, before recovering to $ 6,282, down one percent, by the close of open outcry trading.

LME copper shed more than five percent last week, its steepest weekly drop since January 2015.

Supporting copper was news that negotiations between workers and BHP Billiton Plc. at the Escondida copper mine in Chile, the world’s largest, are “far from reaching agreement” with less than three weeks to go before the negotiation deadline.

LME zinc gained 1.3% to end at $ 2,735 a ton, supported by a report from state Chinese research institute Antaike saying zinc production in China would fall to its lowest level since 2015 in the third quarter, according to a note by Commerzbank.

LME nickel slipped 1.8% to $ 13,945 a ton after touching $13,830, the weakest since May 11.

LME aluminum rose 0.10% to finish at $2,080 a ton after touching $ 2,071, the weakest since April 9, as Chinese alumina refiners cut production.

Among other base metals, lead dropped by one percent to close at $2,332 a ton while tin dipped 0.40% to $19,325 after touching $19,330, the lowest since Dec. 21 last year. —