Copper prices hit their highest level in more than six months on Monday on improving demand prospects after top consumer China reopened its borders, while a weaker dollar bolstered confidence in the market.
Benchmark copper on the London Metal Exchange was up 1.9% at $8,752 a tonne ($3.97 a pound) after hitting $8,801 ($3.99 a pound), the highest level high since last June 22.
After three years, China opened sea and land crossings with Hong Kong and removed the quarantine requirement for incoming travelers, dismantling a final pillar of a zero-COVID policy that had isolated the country from the rest of the world.
“China’s reopening at a fast pace is adding fuel to the fire that after the New Year there will be a pick-up in demand at a time of low inventories,” a metals trader said, adding that a weaker US currency would also help. to the demand for products quoted in dollars.
The dollar was near its lowest level in seven months against other major currencies after data last week suggested the Federal Reserve may slow the pace of its rate hikes, which is also a boon for equity markets. metals.