Copper electric motor winding. (Stock Image)
Copper price rose on Thursday as the dollar weakened and investors looked ahead to an expected revival in demand in China.
Copper for delivery in March rose on the Comex market in New York, touching $4.12 per pound ($9,064 per tonne), up 2.7% compared to Thursday’s closing, after hitting a five-week low on Wednesday.
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“There’s high-level data showing that things are beginning to stir in China, but when it comes to infrastructure and construction, it will take a bit more time,” said independent consultant Robin Bhar.
“There’s good dip buying around to support the underside. People are taking the opportunity to build longs, whether tactically as we go into Q2 or strategically because of the green energy transition.”
Also supporting metals was a weaker dollar index as investors scooped up higher-risk currencies.
“The demand is bad but the outlook is good. People are just hoping for a recovery in March,” said a metals trader, expecting prices to continue to trade sideways until March.
(With files from Reuters)
