Copper price up supported by pullback in the dollar

Copper for delivery in September rose 5% from Wednesday’s settlement, touching $3.58 per pound ($7,876 per tonne) Thursday morning on the Comex market in New York, after hitting its lowest since November 2020 this week.

The most-traded August copper contract in Shanghai rose 0.2% to 57,950 yuan ($8,641.90) a tonne.

The dollar eased 0.1% after scaling a 20-year peak against its rivals, making greenback-denominated metals slightly less expensive for other currency holders.

The US dollar will remain strong for at least the next three months due to expectations of aggressive Federal Reserve rate hikes and safe-haven appeal stemming from global recession fears, a Reuters poll of foreign exchange analysts showed.

The head of the International Monetary Fund said the outlook for the global economy had “darkened significantly” since April and she could not rule out a possible global recession next year given the elevated risks.

Peru said on Wednesday its copper output fell 11.2% in May from a year ago after a stoppage at its Las Bambas mine and lower quality production in other deposits.

Meanwhile, China is facing covid-19 flare-ups across the country with mass testing and fresh restrictions.