Copper prices rose in London on Wednesday, as risk sentiment was boosted after data showed that industrial profits unexpectedly surged in top consumer China last month.
Three-month copper on the London Metal Exchange rose 0.2% to $8,103 per metric ton by 0417 GMT, rebounding from a near four-month low hit on Tuesday.
Profits at China’s industrial firms in August posted a surprise surge of 17.2% from a year earlier, compared with a 6.7% fall in July, as a flurry of policy support steps has started to stabilise parts of the stuttering economy.
However, January-August profits were still down 11.7% from a year earlier.
Meanwhile, the dollar traded near a 10-month high against its major peers, making greenback-priced metals more expensive to holders of other currencies.
LME aluminium was almost flat at $2,244 a ton, nickel dropped 0.9% to $18,700, zinc eased 0.2% to $2,506.50, lead edged down 0.1% to $2,185, tin dropped 1.2% to $25,705.
Copper dragged down by China demand concerns
The most-traded November copper contract on the Shanghai Futures Exchange fell 0.5% to 67,180 yuan ($9,197.32) per metric ton, tracking overnight loss in London.
SHFE aluminium rose 0.1% to 19,385 yuan a ton, nickel dropped 3.4% to 151,130 yuan, zinc declined 1.3% to 21,560 yuan, lead fell 0.7% to 16,675 yuan and tin 1.1% to 218,210 yuan.
The chairman of China Evergrande Group has been placed under police surveillance, Bloomberg News reported on Wednesday, ratcheting up pressure on the embattled developer whose outlook has already darkened significantly this week.
Troubles in China’s real estate sector, which accounts for a vast amount of metals demand, have been weighing on metals prices.
Comments
Comments are closed for this article.