NGLOY - Copper base metals rise after China reinforces stimulus hopes

2023-07-25 08:58:48 ET

Freeport McMoRan ( NYSE: FCX ) +2.6% pre-market Tuesday as prices climbed for copper and other base metals after top consumer China pledged to step up policy support for the economy, focusing on improving domestic demand.

The yuan also rebounded, making dollar-denominated metals more attractive for Chinese buyers.

According to Reuters, three-month benchmark copper ( HG1:COM ) on the London Metal Exchange recently traded +1.5% to $8,646 per metric ton, after earlier touching $8,675.50, its highest since July 14.

Copper is still down more than 9% from its mid-January peak achieved during a short-lived period of bright expectations for a post-pandemic boom in China.

ETFs: ( COPX ), ( NYSEARCA: CPER ), ( JJC ), ( JJCTF )

LME aluminum ( LMAHDS03:COM ) was +0.9% to $2,228/ton and zinc ( LMZSDS03:COM ) +1.8% to $2,460/ton; tin and nickel also traded higher, while lead fell.

Other potentially relevant stock tickers include ( BHP ), ( RIO ), ( VALE ), ( OTCQX:FSUMF ), ( SCCO ), ( OTCPK:GLCNF ), ( OTCPK:GLNCY ), ( OTCQX:AAUKF ), ( OTCQX:NGLOY )

China's top decision-making body noted the struggles faced by the economy and signaled it planned new policies to support property developers.

China's home building is a major source of metals demand, and the government's signals are lifting metals prices after a period of concern about the economy, Australian bank ANZ said.

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