LONDON, June 27 Reuters Copper prices fell on Monday as fears of a global recession, inflation and higher interest rates dominated the mood, but sentiment was supported by top consumer China relaxing some COVID restrictions.
Benchmark copper on the London Metal Exchange traded 0.3 lower at 8,356 a tonne in official rings. Prices of the metal, used as a gauge of economic health by investors, touched 8,122.50 a tonne on Friday, the lowest since February 2021.
Copper is supported by optimism around the lifting of COVID19 restrictions in China, said Giles Coghlan, analyst at broker HYCM. But it is hard to see whether it will last as it all depends on whether a global recession can be avoided.
COVID Beijing said it would allow schools to resume inperson classes and Shanghai39;s top party boss declared victory over COVID19 after the city reported zero new local cases for the first time in two months.
GROWTH Soaring inflation, interest rate hikes, expectations of further rate increases and the damage to growth and demand have seen prices of equities and commodities plummet in recent weeks.
ZINC A small rise in stocks in LME registered warehouses, up 3,175 tonne since last Monday to 81,725 tonne, initially weighed on prices of the metal used to galvanise steel .
Easing concern about supplies on the LME market saw the premium for cash over the threemonth zinc contract fall back to 70 a tonne from above 200 a tonne last week.
But zinc availability on the LME market will…