Copper prices recover from a two-week low

LONDONcopper prices rose yesterday after hitting a two-week low in the previous session as the United States dollar eased.

This is after copper prices slid to near two-week lows on Monday, pressured by fresh Covid-19 curbs in top consumer China, a stronger dollar and rising inventories in warehouses registered with the London Metal Exchange (LME).

Access Bank Zambia in its treasury market report indicated that London copper prices rose yesterday after hitting a two-week low in the previous session, as the dollar eased, despite demand concerns due to rising Covid-19 cases in top consumer China kept gains in check.

“Three-month copper on the London Metal Exchange was up one percent at US$7,957 a tonne,” the bank stated.

And Absa Bank Zambia indicated that copper prices slid to near two-week lows on Monday, pressured by fresh Covid-19 curbs in top consumer China, a stronger dollar and rising inventories in warehouses registered with the LME.

It stated that benchmark copper on the LME was down 1.5 percent at US$7, 953 a tonne, from an earlier US$7, 930, the lowest since November 8 2022.

The higher United States currency weighed on industrial metals overall as it makes dollar-priced commodities more expensive for holders of other currencies.

On the exchange rate, Absa stated that the Zambian Kwacha traded fairly stable in yesterday’s session, but continued adding on to its losses against the United States dollar on a close day basis, mainly due to low supply of the greenback to cushion the high demand characterising the market.