Copper prices are expected to rebound further in the coming months after heavy losses, a Reuters poll showed, as China unleashes more infrastructure spending and other stimulus for the economy.
News of more infrastructure projects and support for China’s property market boosted copper prices this week.
Copper rose 2.9% to $3.58 ($7,876) a tonne on the Comex market in New York, during the Friday morning session.
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“Industrial metal prices may have undershot as the market mood shifted sharply from extremely bullish to bearish,” said Julius Baer analyst Carsten Menke.
“While China’s lockdowns remain a wild card, we believe the worst in terms of Chinese growth is behind us.”
Analysts expect a tight supply situation to ease, having marked down estimates for a global deficit this year to 30,000 tonnes, less than a third of the 110,000 tonnes forecast in the April poll.
(With files from Reuters)