Copper Gains as China COVID Cases Ease, Demand Still at Risk

COPPER - LONDON. Copper prices gained on Wednesday as slowing COVID-19 infections in top metals consumer China eased near-term demand concerns, even as enduring pandemic-related lockdowns weighed on sentiment.

Shanghai said half the city had achieved "zero-COVID" status, but uncompromising restrictions had to remain in place under a national policy.

Lockdowns in China and worries over aggressive U.S. interest rate hikes this year have weighed on base metals, with copper hitting its lowest in nearly five months this week.

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Beijing's reluctance to inject economic stimulus to bolster demand would continue to weigh on metals, said Caroline Bain, senior commodities economist at Capital Economics.

"The lockdowns in China have been the final nail in the coffin for demand. It has exposed how subdued demand has been," Bain said.

Benchmark copper on the London Metal Exchange (LME) was up 1.4% to $9,355 per tonne in official trading activity.