China’s reopening of borders an optimistic trigger for Copper Metal

  • 10-Jan-2023
  • 2 mins read

The news of long-awaited border re-opening in China, can be seen as the final step of dismantling of
China’s zero covid policy. It is expected that now with the factories beginning to operate at full scale
in China, the demand for base metals is bound to rise.
The prices of the Copper have already hit 6 months high. As today copper trades at 3.98$ an ounce

The prices of copper in London Metal Exchange at its 6 months high near $8698 a tonne, along with the prices of other base metals too. Goldman Sachs expects copper prices to average around $9,750 this year, with the average price jumping to $12,000 by 2024.

The events of last weekend have changed many people’s views on the global economy, and there are talks of green shoots of recovery in Chinese economy.

Economists forecast that there could be a copper deficit this year as the production in Chile, the world’s largest producer has reported fall in production and demand for copper from EV space is on a rise.

Investment Opportunities.

Now as China is moving towards ending Zero Covid Policy and the U.S. dollar is near its lowest point in seven months against other major currencies after data suggested the Federal Reserve could slow the pace of its rate hikes, augurs well for the base metal prices especially copper.

Investors can look into select metals and mining sector picks to invest to benefit out of the rebound in base metal prices.

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