Industrial metals gain hope on demand after China eases lockdowns

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Copper and other industrial metals rose on Monday as hopes of a recovery in demand grew after China eased COVID-19 restrictions and further cut mortgage interest rates for some home buyers in order to support its real estate market.

FUNDAMENTALS

* The three-month benchmark copper on the London Metal Exchange (LME) rose 0.5% to $9,205.50 a tonne, at 0208 GMT.

* June’s most active copper contract on the Shanghai Futures Exchange rose 1.1% to 71,370 yuan ($10,525.31).

* Shanghai will gradually start reopening businesses such as shopping malls and hair salons from Monday after weeks of strict COVID lockdown, while Beijing battles a small but stubborn outbreak.

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* China’s financial authorities on Sunday authorized a further cut in mortgage interest rates for some homebuyers, in another effort to support its property market and revive a flagging engine in the world’s second-largest economy.

* The dollar lost 0.1% against its rivals, making dollar-denominated metals cheaper for buyers using other currencies.

* China’s industrial production fell 2.9% in April from a year earlier, down sharply from a 5.0% increase in March, according to data from the National Bureau of Statistics. Retail sales in April fell 11.1% year-on-year.

* China’s central bank rolled over maturing medium-term political bonds while keeping the interest rate unchanged for a fourth consecutive month, in line with market expectations.

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* The LME on Friday proposed measures it said would improve transparency and stability in the OTC metals market, including more frequent disclosures of all positions.

* A constitutional assembly in the world’s top copper-producing country on Saturday rejected a major overhaul of mining rights, including the expansion of Chilean state ownership.

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MARKET NEWS

* Asian stock markets struggled to sustain even a minor rally on Monday after shocking data out of China underscored the deep damage the lockdowns were causing to the world’s second-largest economy.

PRICES

Three Month LME Copper

Most active copper ShFE

Three Month LME Aluminum

Most Active ShFE Aluminum

Three-Month LME Zinc

Zinc ShFE most active

Three-month LME advance

Lead ShFE most active

Nickel LME three months

Most Active Nickel ShFE

Three Month LME Box

Hottest ShFE tin ($1 = 6.8062 Chinese yuan) (Reporting by Brijesh Patel in Bangalore; Editing by Subhranshu Sahu)