Copper prices moved in a tight range as uncertainty over the economic impact of a coronavirus outbreak offset optimism around news that the that the spread of the virus may be slowing and might be over by April.
Three-month copper on the London Metal Exchange (LME) edged up 0.1 percent to $5,753 a ton, while the most-traded copper contract on the Shanghai Futures Exchange (ShFE) was nearly flat at 45,630 yuan ($6,553.49) a ton.
The epidemic could be over by April, a Chinese senior medical adviser said, while the number of new cases in the country fell to the lowest since late January, brightening markets’ mood.
However, international experts remained alarmed by the spread, and concerns remained around the impact that the virus could have on factory activity and consumer spending in the world’s second-largest economy.
“Delayed construction and shutdowns could constrain demand for industrial metals in Q1.
The current (virus) outbreak will be a major drag to global demand,” ANZ said in a note.
“That said, this softer demand backdrop has been largely factored into prices. Chinese government monetary easing should favor demand recovery in Q2 and Q3,” ANZ said. — Reuters
