London, May 25: Copper futures on the London Metal Exchange (LME) closed higher on Thursday, recovering from a six-month low hit on Wednesday, mainly supported by short covering.
LME copper for three-month delivery was up 0.67 percent at $7,943.5 a tonne by 1607 GMT. Copper hit $7,867 on Wednesday, also its lowest since early November 2022.
Copper is used mainly in the power and construction industries and is widely seen as a barometer of global economic growth. Copper is down 5.2 per cent so far this year, after falling 13.8 per cent in 2022. Copper hit a seven-month high of $9,550.5 on January 18 as traders hoped for a rebound in China's economy and demand for the metal. Since then, however, copper has fallen 16.8%, largely reflecting worries about the growth outlook amid global central bank rate hikes; An uneven recovery in China's economy and signs of weakness in metals demand, rather than a strong recovery as had been expected, have also eroded optimism.
China's troubled property market will improve in the coming months, a top executive of major global miner BHP Billiton said on Thursday. The comments helped lift copper prices higher. A statement of confidence in the Chinese economy from the world's largest mining company helped boost sentiment after weaker-than-expected economic activity since the lifting of strict pandemic restrictions late last year severely dented metals demand. China is the world's largest copper importer.
Talks between the White House and congressional leaders to raise the government's borrowing limit and cut spending are nearing agreement, also helping calm market fears of a U.S. default and a deep recession.
On Thursday, three-month zinc on the LME closed down 2.6% at $2,253.5, bringing losses for the week to 9%. Zanalyst said the fall in zinc prices was due to weak demand, resulting in a supply glut and an increase in exchange inventories.
At LME delivery warehouses, zinc stocks rose 18,050 tonnes to an eight-month high of 63,450 tonnes.
Dan Smith, head of research at Allied Metals Trading, said. Mr Smith said zinc prices were vulnerable to the construction market, which in many places was performing poorly. That said, Smith thinks zinc looks oversold and would be surprised if it could fall much further from its current position.
On Wednesday, three-month tin on the LME rose 2.4 percent to $24,535 a tonne after the International Tin Association said a detailed mining moratorium in Myanmar's Wa state this month raised supply concerns.
Among other metals, aluminum was up 0.6 percent at $2,218 a ton; Lead was up 0.8 percent at $2,065 a tonne and nickel was up 2.2 percent at $21,195 a tonne.
