(Bloomberg) -- Copper recorded its biggest monthly advance since April 2021 as investors bet China may shift from Covid-Zero policies and boost demand in the top metal-consuming economy.
Copper prices rose almost 11% on the London Metal Exchange in November, snapping seven months of losses. The industrial metal pared some gains Wednesday after top producer Chile registered its first year-on-year output increase since July 2021 in October.
China is pushing for greater vaccination of the elderly, driving speculation about a further easing of Covid-Zero rules that have taken a toll on the economy. The measures have undercut metals demand throughout the year, adding to headwinds caused by Europe’s energy crisis and the Federal Reserve’s tighter monetary policy. Both have also shown signs of easing this month, brightening copper’s outlook.
China’s Covid situation, coupled with the domestic stimulus and tight physical supplies, will increase volatility in copper prices, Chaos Ternary Research Institute said Wednesday in a note.
Softer China Stance on Covid Emerges in Media, Official Rhetoric
Copper on the LME rose 2.5% to settle at $8,239 a metric ton at 5:53 p.m. local time. All other main metals gained.
--With assistance from Martin Ritchie and Yvonne Yue Li.
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