Copper prices rose on Friday as traders awaited the reopening of Chinese markets, which would provide clarification on how fast demand in metals will increase following the country’s lifting of strict COVID-19 restrictions.

Surge in Metal Prices

The gains are primarily attributable to bullish investors who believe that the reopening of the second-largest economy in the world will increase business activity as well as metals demand.

That the market have overshot because of current level of physical demand is low and a rebound will take some time.

However, Swift economic reopening after roughly 3 years of strict covid restrictions could provide a much-needed push to global economic development.

According to Daniel Major, a metals & mining senior analyst at UBS, metals such as copper and aluminium are “not a very substantial portion of the entire inflation basket.“

Delhi Metal Market

The prices for copper scrap have risen to 701+GST Per/kg. Aluminium scrap to 167+GST Per/kg, and zinc scrap to 216+GST Per/kg, surging by an overall average of almost 13% .

The LME copper stocks falling to 73,975 metric tonnes on Friday to their lowest level in more than ten months.