Copper declines as investors assess Chinese demand

Copper prices fell on Monday as investors assess Chinese demand as Beijing eases Covid 19 restrictions. 

Copper futures at the Shanghai Exchange fell 1.2% to 69.320 thousand yuan a tone, or $10.262 thousand a tone, while three-month copper futures fell 0.7% at the London Exchange to $9,197 a tone. 

Copper prices rallied 28% since July 2022 at the London Exchange, and by 33% at the Shanghai Exchange on hopes for improving Chinese demand after easing its Covid 19 policies.

Despite that, copper prices didn't gain much ground this month as Chinese factory activity dropped in January compared to December. 

The dollar index stabilized at 101.9 as of 15:28 GMT, with a session-high at 102.04, and a low at 101.6. 

Copper futures due in March were down 0.3% as of 15:28 GMT to $4.21 a pound. 

What's Next? 

Now markets await important policy meetings by major central banks in the US, UK, and Europe this week.

All are expected to increase interest rates and extend their tightening policies, which could prop up the dollar and pressure copper prices.