Investing.com - Copper prices bounced back from six-and-a-half year lows on Wednesday, as the latest trade figures out of China eased some concerns over the health of the world's second-biggest economy, while also pointing to strong demand for the red metal.
Chinese exports slumped 1.4% from a year earlier in December, far better than forecasts for a decline of 8.0%, while imports dropped 7.6%, compared to expectations for a drop of 11.5%. That left China with a surplus of $60.1 billion last month, up from $54.1 billion in November.
China’s copper arrivals in December surged 15.2% from a month earlier to 530,000 metric tons, the second highest monthly total on record, easing worries over weakening demand prospects from the Asian nation.
Copper for March delivery on the Comex division of the New York Mercantile Exchange tacked on 0.7 cents, or 0.35%, to trade at $1.966 a pound by 07:45 GMT, or 2:45AM ET.
A day earlier, copper fell to $1.952, a level not seen since April 2009, as investors cut holdings of the red metal amid persistent worries over an economic slowdown in China.
Meanwhile, three-month copper on the London Metal Exchange rose 0.62% to $4384.50 a metric ton. Prices hit $4344.50 on Tuesday, the lowest since May 2009.
Prices of the red metal are down 7.5% so far in 2016 as a meltdown on China’s stock market and a rapid depreciation of the yuan rattled investor sentiment.
The Asian nation is the world’s largest copper consumer, accounting for nearly 45% of world consumption.
Elsewhere in metals trading, gold futures slumped to a one-week low on Wednesday, as the metal’s safe-haven appeal was dampened amid a recovery in global equity markets.