By Zandi Shabalala

LONDON, (Reuters) – Copper prices rose Wednesday due to slowing COVID-19 infection in China’s top metals buyer. This helped ease near-term demand worries. However, sentiment was impacted by the enduring pandemic-related lockdowns.

Shanghai declared that 50% of its city was now “zero COVID”, but strict regulations had to continue under a government policy.

Base metals were hit hard by worries about U.S. interest rates rising aggressively this year and Chinese lockdowns.

Beijing’s refusal to infuse economic stimulus to increase demand will continue to weigh down metals, according to Caroline Bain senior commodities economist at Capital Economics.

The lockdowns in China are the last nail in the coffin of demand. Bain explained that the lockdowns in China have exposed how low demand was.

In official trading, benchmark copper traded on the London Metal Exchange was up 1.4% at $9,355 per ton.

LOGISTICS – China’s COVID-19 virus is disrupting its lithium, cobalt and nickel use, according to Antaike’s state-backed research.

DEMAND – China’s total vehicle sales in April fell almost 48% compared with a year before. Pandemic-related lockdowns in factories and showrooms caused factory and showroom closures. But, sales of electric cars soared and Chinese brands surpassed global competitors.

COPPER – China’s April copper cathode production fell in both a monthly as well an annual manner, Antaike reported Tuesday. The reason was maintenance, Antaike explained, and COVID-19, which prevented smelters from making more metal.

INFLATION: China’s factory gate inflation fell to an all-time low of 1.1% in April. This gives policymakers more room to inject additional stimulus to support a faltering economy.

DOLLAR – At an almost two-decade peak, the dollar is making metals and assets much more expensive than other currencies. [FRX/]

COLUMN

LME Aluminium gained 0.6% to $2770 per tonne. Zinc rose 1.3% at $3,644 and lead remained steady at $2115. Tin was up 0.1% on $35,575, nickel dropped 2% to $27.875.