Shanghai copper rises as China’s easing curbs lift demand prospects

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Shanghai copper prices rose on Thursday as the lifting of COVID-19 restrictions in top metals consumer China buoyed hopes of demand recovery, although a stronger U.S. dollar limited gains.

FUNDAMENTALS

* The most-traded July copper contract in Shanghai was up 0.5% at 71,990 yuan ($10,718.51) a tonne, as of 0159 GMT.

* Trading is expected to be tepid as the London Metal Exchange was closed for a public holiday.

* Shanghai sprung back to life after two months of bitter isolation under a ruthless COVID-19 lockdown, with shops reopening and people going back to offices, parks and markets, hoping to never go through a similar ordeal again.

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* The dollar hit a three-week high against the yen in early trade on Wednesday and was holding firm against other majors, supported by rising U.S. Treasury yields.

* A stronger dollar makes greenback-denominated metals more expensive for buyers using other currencies.

* Chile’s environmental regulator initiated a sanction process against Antofagasta Minerals’ Los Pelambres copper mine for deficiencies associated with tailings management.

* Southern Copper Corp said a fire broke out at its Los Chancas mining project on Tuesday evening, around the same time as another fire started at MMG Ltd’s Las Bambas copper mine, sources said.

* Global copper smelting activity ticked higher in May as a rebound in China offset declines in Europe and elsewhere, data from satellite surveillance of metal processing plants showed on Wednesday.

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* Global copper supply will outpace demand…