Base Metals Preview: Copper Pulls Back From Six-Week Highs

6 Jun 2022 , 09:11 AM

Copper futures are pulling back from its April highs of $4.57 levels and are currently quoting at $4.41 per pound. Copper soared to six week high of $4.57 per pound on Friday, lifted by prospects of higher demand after top consumer China ended its two-month long lockdown. A sustained drop in the LME Copper inventories, which fell near one month low also boosted the red metal. Meanwhile, China services sector continued to contract in May, albeit at a slower pace, the latest survey from Caixin revealed on Monday with a services PMI score of 41.4. Thats up from 36.2 in April although it remains well beneath the boom-or-bust line of 50 that separates expansion from contraction. Although not as sharp as that seen in April, the pace of reduction was nonetheless the second-sharpest seen since February 2020, during the initial phase of the COVID-19 pandemic. Companies continued to note that operations were heavily impacted by pandemic-related restrictions, which included temporary closures and limiting mobility. Total new business fell for the fourth month in a row in May. Powered by Commodity Insights