Copper Rebounds as China Reopens Economy
Copper prices see an uptick
Copper prices saw an uptick late last week amid signs of resilience in the US labor market offsetting a fifth consecutive weekly decline in the S&P 500 index.
Copper and iron ore are rallying as China reopens its vast economy with benchmark copper prices passing $9,000 a ton.
The latest customs data from Bloomberg shows that Chinese exports of unwrought copper and other products in December rose 13% year-over-year.
Copper's rebound continues
Copper rallied back above $9,000 a ton as investors weighed upbeat factory data from top consumer China and the potential for further demand growth as the country reopens its economy.
Bloomberg's copper index is up more than 10% since the start of the year, outperforming other industrial metals such as aluminum and zinc.
The powerful rally close to $10,000 a ton is facing a test as buyers in China, the world's largest copper consumer, return from the Lunar New Year holiday.
- Copper prices have been on a roller coaster ride in recent months, hitting a five-month low in December before rebounding sharply in January.
- The latest rally has been driven by optimism about China's economic recovery and expectations of increased demand for copper as the country ramps up infrastructure spending.
- However, some analysts are warning that the rally could be short-lived, as demand from China is expected to slow later this year.
Conclusion
Copper's rebound is a sign of the improving global economy. As China reopens its economy, demand for copper is expected to increase, which should support prices in the coming months.
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