The US manufacturing index fell to a minimum in more than two years.
After disappointing US manufacturing statistics allayed concerns that the Fed might tighten monetary policy too soon, copper and aluminum prices increased.
Beijing may relax its strict stance on COVID.
The Institute for Supply Management reported that manufacturing activity decreased in September to its lowest level in more than two years, which contributed to the dollar’s depreciation and made most customers’ access to foreign-denominated metals more affordable.
Analysts predict Beijing may start to relax its rigorous stance on restricting COVID’s spread. Although it is doubtful that the COVID policy will be completely abolished, some softening is envisaged.
According to Richard Adkerson of the mining corporation Freeport McMoRan, a new wave of copper consumption is to be anticipated as a result of electrification in terms of metal demand.
On the London Metal Exchange, copper increased by 2.2% to $7,671.50 a ton, aluminum increased by 2.9%, and zinc increased by 1%.