On Wednesday, April 29, global copper prices are showing an increase, attributed to active stockpiling of the metal by Chinese buyers ahead of the long weekend for Labor Day. At the same time, concerns remain in the market regarding the prospects of the global economy due to the protracted conflict in the Middle East.
This is reported by Finway
Chinese Buyers Boost Demand
According to analyst Gao Yin from Shouhe Asset Management Co, manufacturers in China are ramping up copper purchases before the holidays, which is driving up the metal’s value. She noted that over the previous four trading sessions, copper prices had dropped nearly 3%, creating a favorable opportunity for new purchases.
“Chinese manufacturers are replenishing stocks ahead of the upcoming Labor Day holiday weekend on Friday, which is contributing to the rise in copper prices,” said analyst Gao Yin from Shouhe Asset Management Co.
Regulatory Measures and Geopolitical Risks
Analyst Xu Wangqiu from Cofco Futures Co. believes that increased control by Chinese authorities in combating invoice fraud could lead to a reduction in copper trading on the spot market. This could also slow the pace of inventory depletion in the largest global market.
Additionally, the market continues to closely monitor the developments in the Middle East. According to the Wall Street Journal, U.S. President Donald Trump has instructed his aides to prepare for a potential prolonged naval blockade to increase pressure on Iran. Such actions could lead to new disruptions in the supply of energy resources and aluminum through the Strait of Hormuz, which, in turn, heightens concerns about further inflation and a slowdown in the global economy.
According to the London Metal Exchange (LME), as of 07:14 Kyiv time, the price of copper has risen by 0.7% to $13,127 per ton. Thus, one kilogram of the metal costs $13.13.