Copper prices bounced back on Wednesday despite concerns of weaker demand ahead of a major holiday in China, the world’s top consumer. Copper futures climbed 1.1% to $3.5635 a pound (or $7,856.21 a tonne) on the Comex by noon EST, rebounding from a one-month low.
China will celebrate its Lunar New Year holiday February 11-17, when metals demand usually dips as business activities slow.
Meanwhile, a recent coronavirus outbreak in China has dampened the country’s economic activities in January, dragging factory output and service activities growth to multi-month lows.
However, outlook for copper remains positive for the later months of 2021. Analysts believe soaring sales of consumer goods such as home appliances and cars outside China are expected to invigorate copper consumption and create shortages later this year.
For years now, copper prices have fluctuated with demand in China. But this year, consumption elsewhere such as in Western European countries will also be important.
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