The copper price fell Monday afternoon after hitting near five-month highs on optimism about demand in China.
Copper for delivery in December fell 2% on the Comex market in New York, touching $3.83 per pound ($8,426 per tonne), from an earlier $3,90 per pound.
[Click here聽for an interactive chart of copper prices]
China鈥檚聽easing聽of covid-19 restrictions included shortening quarantines by two days for close contact of infected people and for inbound travelers. Still, a complete dismantling of covid controls may be a long way off.
鈥淩elaxed protocols for covid prevention helped start the rally last week,鈥� said Giles Coghlan, analyst at broker HYCM.
鈥淭he announcement of the 16 point property support plan is further good news supporting a return to demand for copper and underpinning prices.鈥�
A notice to financial institutions from聽Chinese regulators聽outlined steps to support the industry, including loan repayment extensions, in a major push to ease the deep liquidity crunch which has plagued the property sector since mid-2020.
Meanwhile, receding worries about copper supply on the LME market due to rising stocks weighed on prices, while the premium for the cash over the three-month contract聽has retreated to near zero from $135 a tonne only three weeks ago.
(With files from Reuters)