MARKET COMMENTARY
Even though copper made a weak start to the month of ay, the rest of the month also copper prices rose. London copper prices was slipped to a near two-week low on 4th of May on fears of excess supply, as some producers looked set to resume operations and demand took a hit from the coronavirus outbreak. Three-month copper on the London Metal Exchange (LME) fell to $5,060 a tonne by, its lowest since April 22.
Industrial metals prices advanced on remaining of the May on hopes for a pick up in economic activity as some U.S. states laid out plans to ease coronavirus-driven restrictions. Also Copper rose on a, buoyed by a rebound in China's demand for the manufacturing material and an unexpected rise in the country's overall exports in April.
China's April exports rose 3.5% from a year earlier, marking the first positive growth since December last year, customs data showed. China's unwrought copper imports rose 4.3% in April from the prior month, according to Reuters calculations based on customs data, boosted by an economic recovery from the coronavirus outbreak and favourable prices.
Gains in copper, however, were capped by simmering trade tensions between Washington and Beijing. Some countries have announced plans to gradually remove restrictions that were imposed to contain the coronavirus pandemic, and governments around the world have been providing stimulus programmes to support their ailing economies.
London copper boosted by expectations of better demand for metals as certain countries started to ease lockdowns put in place to curb the coronavirus pandemic. Australia, France and Spain are slowly opening their economies, while the United Kingdom - which has the second-highest virus death toll in the world - introduced some limited easing of restrictions.
Copper, used as a gauge of global economic health, has leaped 19% on the LME since March 19, when the contract hit a 45-month low, on improved demand from top consumer China, supply shortage worries and hopes for a pick up in global economy. LME copper, as demand for the red metal was still under pressure to what many describe as a long and bumpy road to recovery ahead.
Copper prices declined on week of 11-15 May as traders fretted about signs of a second wave of coronavirus infections that could add more pressure to the already-hit global economy. Copper prices extend losses after the U.S. Federal Reserve chief warned of an "extended period" of weak economic growth, sparking concerns of lean demand for the metal.
Copper prices climbed on 18th of May as the reopening of economies paralyzed by the coronavirus crisis boosted hopes of a revival in demand for metals.
Copper prices retreated from a two-month high on 21th of May as worries about the economic damage from the COVID-19 pandemic offset optimism over a potential vaccine. Three-month copper on the London Metal Exchange climbed to $5,464 a tonne. The last wee of May Copper prices fell on Wednesday as Sino-U.S. friction over Hong Kong quashed initial euphoria following the easing of lockdown restrictions in many countries. London Metal Exchange (LME) ended the May from $6,097.53 level with %3.8 monthly advantage.