The copper prices went up to the more then 6 month high on Monday on demand forecasts improved following China’s reopening of its borders. On Comex exchange in New York, copper on delivery for March increased by 3%, reaching $4.03 a pound or $8,866 per metric ton.
At $8,710 earlier in the day, 3-Month copper on London Metal Exchange reached its highest level since Jun 23, 2022.
On the Shanghai Futures Exchange, the most actively traded March copper contract closed high 1.5% at 66 095 yuan ($9 751.80) per metric ton.
Mainland China has opened land and sea borders between Hong Kong and removed the barrier for incoming tourists to be quarantined.
The restarting of China’s borders signifies the end to Covid Zero, a policy that secluded the second-largest economy in the world for 3 years and had a negative impact on the economy.
According to government statistics, more than 36,000 Hong Kong residents left the city on Sunday through its border crossings, with all but one heading straight to mainland China.
According to government figures and data obtained, that represents a 8 times increase over departures made the day before and the largest exodus since February 3, 2020.
“It appears that many people’s opinions on the world economy have changed as a result of the activities of last weekend… According to Malcolm Freeman.
The director of broker Kingdom Futures, “this in has led to talk on green shoots for revival, full speed ahead for Chinese, and hence the world economy.”
The reopening of China’s borders and growing expectations that the United States Federal Reserve will scale down interest rate increases in the wake of the Dec jobs report caused the US dollar to weaken.