China’s copper prices rebound as US relaxes Huawei ban, trade tension eases

An easing of export ban by the US to Chinese communication technology provider, Huawei and renewed Sino-US talks have hiked commodities prices, bolstering Chinese copper prices, Chinese industry sources said Monday.

Shanghai Futures Exchange’s most active 1909 copper futures contract prices, for September delivery, closed at Yuan 46,670/mt ($6,789) last Friday, up Yuan 130/mt from the preceding day, after a sharp fall to Yuan 46,080/mt last Thursday, SHFE data showed.

Chinese copper giant, Tongling Nonferrous Metals in its weekly report said following domestic copper prices dipping to the lowest level in two years on Jul 10, prices rebounded on Jul 12 on several positive macro factors, including better-than-expected June social financing data in China, and relaxed US export policy to Huawei.

A recent growth in Chinese investment in power equipment implied an improvement in future copper demand, along with the easing of Sino-US trade tension, has lifted copper sentiments, Brokerage Huatai Futures said in its report.

However, Chinese industry analysts said due to anticipated completion of key Chinese smelters’ annual maintenance, China’s copper supply pressure could gradually appear in the coming months.

State-run metals consultancy, Beijing Antaike sees China copper demand in 2019 to grow just 3%, compared with 4% in 2018, citing a lack of demand impetus, with only some growth seen in new energy car sector.
Source: Platts