March 22, 2023 (MLN): Copper prices rebounded in early Asian trade today, following a recent downturn attributed to cooling excitement over China's reopening.
Analysts remain optimistic about the metal's bright price outlook, citing low inventories that continue to shrink and support prices in the long run.
Investor risk appetite has also improved, following the easing of the latest banking crisis and alleviating worries over the US Federal Reserve's aggressive monetary tightening. According to analysts at Galaxy Futures, this has contributed to the recovery in copper prices.
As of early morning trading, the three-month forward LME copper contract is up 0.3% at $8,790.00 per metric ton. The rise in copper prices is expected to continue in the near term, as demand for the metal remains robust across a variety of sectors, including construction, electronics, and renewable energy.
Copper is often viewed as a barometer of global economic health, given its wide range of industrial applications.
The recent uptick in copper prices indicated a growing optimism among investors about the global economic recovery, as well as the long-term prospects for the metal.
