First Republic Bank in Los Angeles. Stock Image.
The copper price rose on Friday as easing concerns over a banking crisis due to the Silicon Valley Bank collapse and Credit Suisse liquidity lifted sentiment.
Copper for delivery in May on the Comex market in New York touched $3.95 per pound ($8,690 per tonne), up 2.3% compared to Thursday’s closing.
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Investors welcomed news of a large group of banks infusing cash into US lender First Republic Bank and Swiss National Bank providing a lifeline to Credit Suisse.
The dollar fell, making it more attractive for non-dollar holders to buy the greenback-priced commodity.
The European metals sector welcomed a move by the EU on Thursday to include copper and nickel as strategic materials for the first time and ensure speedier permits and easier access to capital, but said more could be done to secure supplies.
The Critical Raw Materials Act unveiled by the European Union adds the two major industrial metals to a list that had previously focused on more niche minerals such as cobalt, lithium and rare earths.
The EU already produces about 15% of its needs for copper, well above the overall 10% target set by the EU for strategic minerals, but the situation could deteriorate, the CEO of Aurubis, Europe’s biggest refined copper producer, said.
(With files from Reuters)