China’s real estate efforts allow copper prices to catch a breath

Copper prices rose on Monday as China sought to ease concerns about financial difficulties in the property sector.

On Sunday, Chinese regulators urged banks to provide loans for qualified real estate projects and adequately meet the financial needs of builders. This is their latest attempt to ease concerns raised by rising mortgage payment penalties for unfinished homes.

A growing number of homebuyers across China are threatening to stop making mortgage payments on stalled real estate projects, creating a housing crisis that is hurting the economy.

Copper prices, meanwhile, rose 4.3%, or $3.37, to $7,414 per ton.

Goldman Sachs Group last week forecast that copper will trade at $6,700 over the next three months, down 22% from the previous trend.

The bank said the strong dollar remains a deterrent until macroeconomic risks subside.

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