Copper bears cheer China-linked fears, fall in global smelting

• Copper price grinds lower, pulls back from a 10-week high.
• China’s strict covid policy, downbeat export data weigh on metal prices.
• Global smelting activity of the Copper declines in October.
• US inflation, risk catalysts are the key to fresh impulse.

Copper price remains pressured around the intraday low, keeping the week-start pullback from a 2.5-month high, as China-inspired fears join downbeat smelting data for the industrial metal.

That said, the red metal drops 1.5% on the COMEX while printing the $3.68 mark whereas a three-month contract of the Copper on the London Metal Exchange (LME) fell 1.7% to $7,961.50 a tonne by 03:06 GMT per Reuters.

Weekend updates from China’s National Health Commission (NHC) suggested no change in the dragon nation’s zero covid policy, which in turn poured cold water on the face of Friday’s hopes that Beijing may ease its strict covid rules. On the same line were the recently higher virus numbers from the Asian major.

“China reported 5,643 new COVID-19 infections on Nov. 6, of which 569 were symptomatic and 5,074 were asymptomatic, the National Health Commission said on Monday,” per Reuters. The news also stated, “That is compared with 4,610 new cases a day earlier – 588 symptomatic and 4,022 asymptomatic infections - which China counts separately.”

Elsewhere, Reuters quotes a joint statement from commodities broker Marex and SAVANT, the satellite analytics service Marex launched with Earth-i in 2019 to mention that Smelting activity fell in all regions except North America.

Also weighing on the metal is China President Xi Jinping’s warning to Russian President Vladimir Putin over the usage of nuclear technology in the war. Furthermore, the news from the Wall Street Journal (WSJ) suggesting that a senior White House Official is involved in undisclosed talks with top Putin aides also tried to please the pair buyers.

However, hopes of an increase in China’s private investments and easing fears of aggressive rate hikes from the Fed, especially after Friday’s mixed US jobs report, put a floor under the metal prices.

Moving on, risk catalysts will be crucial for the metal prices and the bears could tighten grips in case the covid woes and/or US inflation intensify.