Copper price gains lift miners as China COVID restrictions ease a bit

May 17, 2022 12:45 PM ETFreeport-McMoRan Inc. (FCX), COPX, CPERJJC, JJCTF, HBM, TECK, AA, SCCO, RIO, BHP, VALE, NUE, X, CLF, HG1:COMBy: Carl Surran, SA News Editor16 Comments

Many copper bobbins, warehouse copper pipes. — SimoneN/iStock via Getty Images

Copper prices are rebounding Tuesday from their lowest levels this year after Shanghai set out plans for ending the COVID-19 lockdown that has lasted more than six weeks.

The city achieved the long-awaited milestone of three straight days with no new COVID-19 cases outside quarantine zones.

ETFs: (NYSEARCA:COPX), (NYSEARCA:CPER), (JJC), (JJCTF)

Base metals miners are rallying, including (NYSE:FCX) +6.7%, (HBM) +6.2%, (TECK) +5.3%, (AA) +4.5%, (SCCO) +4.5%, (RIO) +3.5%, (BHP) +3.2%, (VALE) +1.8%.

Steel producers also sport strong gains, including (NUE) +4.5%, (X) +4.3%, (CLF) +4%.

"Shanghai is coming out of lockdown gradually and that is giving rise to demand hopes for cyclical commodities in particular," Commerzbank analyst Daniel Briesemann said, according to Reuters.

"From a technical point of view, most of these metals were oversold and sentiment was quite gloomy so it could only get better," Briesemann said.

Comex copper for July delivery (HG1:COM) was +2.1% to $4.28/lb ($9,423/ton) midday after sinking to seven-month lows last week.