Copper prices rose on Thursday, as investors and traders bet on the Chinese authorities releasing economic support measures to perk up growth following a series of poor data.
Three-month copper on the London Metal Exchange advanced 0.1% to $8,402.50 per metric ton by 0145 GMT, while the most-traded September copper contract on the Shanghai Futures Exchange increased 0.3% to 68,390 yuan ($9,490.70) per metric ton.
Data on Wednesday showed China’s consumer sector fell into deflation and factory-gate prices extended declines in July, raising more pressure on Beijing to boost policy stimulus.
However the gains in metals prices were limited, as concerns over the weak demand in top metals consumer China and the lack of details on the stimulus measures created some uncertainty.
LME aluminium rose 0.4% to $2,203 per metric ton, nickel was almost flat at $20,550, zinc was nearly unchanged at $2,480, lead increased 0.4% to $2,134.50 and tin fell 0.6% to $27,110.
SHFE aluminium rose 0.3% to 18,485 yuan per metric ton, nickel fell 1.2% to 163,500 yuan, zinc rose 0.8% to 20,860 yuan, lead climbed 0.4% to 15,980 yuan and tin dropped 0.5% to 224,110 yuan.
Copper bounces on stimulus bets after China sinks into deflation
The tightness in LME tin has eased, with the cash contract trading at a $170-per-metric-ton discount to the three-month contract, the biggest discount since March 15.
In zinc, the LME cash contract was at a $36.50 per metric ton premium to the three-month contract, the highest premium since Feb. 20 and indicating increasing tightness of nearby supplies.
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