Copper gains ground even as markets focus on China real estate crisis

Copper prices rose on Monday following recent losses that were sustained due to concerns about demand in China, following fresh news about the deteriorating real estate sector, while the US dollar gains ground ahead of the Federal Reserve's meeting. 

Copper prices at the London Metals Exchange fell 0.3% to $8517 a tonne.

Copper scaled three-week high at $8599 last week after China's central bank pumped massive liquidity into the system.

However optimism took a backseat after Chinese data showed corporate profits tumbled once more in 2023. 

Recent news also showed that a Hong Kong government ordered the liquidation of the giant real estate company Evergrande. 

As for the US, the Federal Reserve is meeting this week, expected to hold rates flat and boost the dollar against major rivals, weighing on greenback-denominated futures. 

Sentiment was also hurt by the 50% surge in copper inventories at the Shanghai Futures Exchange compared to early January at 50,323 tonnes. 

Otherwise, aluminium prices fell as markets focus on weak demand, hitting $2256 a tonne, while zinc fell 0.3% to $2568, as lead added 0.2% to $2169, while tin stabilized at $26660.

Otherwise, the dollar index rose 0.3% as of 16:55 GMT to 103.7, with a session-high at 103.8, and a low at 103.4.

Copper March futures rose 0.6% as of 16:49 GMT to $3.87 a pound.