Copper poised for first weekly surge in seven weeks as China eases COVID restrictions

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London copper prices were set for their first weekly gain in seven years on Friday as easing of COVID-19 restrictions in top metals consumer China raised expectations of a demand recovery, while a weaker US dollar offered further support.

BASICS

* Benchmark three-month copper on the London Metal Exchange (LME) fell 0.4% to $9,377.50 a tonne (0203 GMT) after rising 2% in the previous session. The contract is up 2.4% so far this week.

* The most active copper contract in June on the Shanghai Futures Exchange rose 0.5% to 71,710 yuan ($10,655.91) a tonne.

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* More Shanghai residents were granted freedom to shop for groceries on Thursday for the first time in nearly two months, as authorities unveiled further plans for a more complete exit from the citywide COVID-19 lockdown.

* The US dollar headed for its worst week since early February against major peers on Friday, weighed down by a fall in Treasury yields and fatigue after the currency’s breathless 14-week surge of 10%.

* A weaker dollar makes greenback-denominated metals cheaper for buyers using other currencies.

* The US Federal Reserve is set to hike interest rates by the end of this year, more than expected a month ago, keeping already significant risks of a recession alive, according to a Reuters poll of economists.

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* The Peruvian prime minister on Thursday failed to negotiate a deal with indigenous communities to allow operations to resume at MMG Ltd’s Las Bambas copper mine, the government’s fourth failed attempt at negotiations.

* China cut its benchmark mortgage interest rate more than expected when it was set in May on Friday, a second cut this year, as Beijing seeks to revive credit demand to prop up the economy.

* Click or for the top stories in metals and other news

MARKETS NEWS

* Asian stocks rose in early trade on Friday after China cut a key lending benchmark to support a slowing economy, but a benchmark for global stocks remained amid investor concerns over sluggish growth on its longest weekly losing streak since Start of recordings set.

PRICES

Three months of LME copper

Most active ShFE copper

Three months LME aluminum

Most active ShFE aluminum

Three months of LME zinc

Most active ShFE zinc

Three months LME advance

Most active ShFE lead

Three months LME Nickel

Most active ShFE nickel

Three-month LME can

Most active ShFE-Tin (US$1 = 6.7296 Chinese yuan) (Reported by Brijesh Patel in Bengaluru; Edited by Subhranshu Sahu)