- Copper price recovers amid supply disruption issues.
- Copper on Comex recovers the $4 mark, helped by some dollar weakness.
- Recovery in equity markets also contribute to the rebound of the metal.
The copper price in Comex is rising after three days of declines on Tuesday, staging a rebound from the lowest level since January 2021 reached on Monday at $3.94. The daily high was reached at $4.07 before correcting to $4.03.
The better mood in the markets is a factor that is contributing to the rebound in copper. Stocks around the world rise after sharp falls last week, caused by fears of a recession and expectations of more monetary tightening.
The cobra is also helped by the dollar, which is retreating, although it has cut losses in the last hour due to a rise in Treasury yields.
The easing of trade tensions between USA Y China it also bodes well for the raw material. Biden He stated that he is evaluating the elimination of part of the tariffs on Chinese products, which the Trump administration imposed.
In addition, the non-ferrous metal is also helped by emerging supply disruption concerns after workers at Chile’s state-owned Codelco, the world’s largest copper producer, went on strike on Wednesday to protest the government and the company’s decision to close a smelter. Meanwhile, the drop in copper stocks on the LME adds to supply concerns, underpinning the copper price.
Despite the list of bullish factors, the climate of caution predominates among operators for the future of the global economy. The world is moving towards more monetary adjustment and fears of more closures in Chinese cities due to COVID outbreaks also re-emerge.
Source: Fx Street
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