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The state reserves administration in China also released 150,000 tonnes of copper, aluminum and zinc into the market, on the third round of metal auctions that helped to cool the rally in copper prices.
Prices are still up 20% this year after rising 26% in 2020, with analysts optimistic that demand for the metal used in power grids will increase as the world races toward electrification.
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Fundamentals have improved in recent weeks, said Citi analyst Oliver Nugent, pointing to falling exchange stockpiles, higher Chinese import premiums, lower speculative positioning and expectations for more economic stimulus.
“Fundamentally we think we’re at the right levels,” he said.
“We see copper a little above $9,000 on average next year.”
(With files from Reuters)
