LONDON: Copper prices rose on Thursday on firmer economic data from top metals consumer China along with hopes for more stimulus, but worries about weak global growth limited gains.
Three-month copper on the London Metal Exchange (LME) was up 0.3% at $7,994 per metric ton by 1600 GMT, having lost 10% since the start of August.
Data on Wednesday showed China’s economy grew at a faster-than-expected clip in the third quarter while consumption and industrial activity in September also surprised on the upside.
Copper and other base metals were expected to remain weighed down around current levels for the rest of the year amid worries that US interest rates will have to remain high to dampen inflation, he added. Meanwhile, the discount of the LME cash aluminium contract to three-month futures declined to a four-month low of $9.50 a ton, indicating tightening availability of LME inventories, before rebounding to $28 by the close. LME on-warrant aluminium stocks, those not earmarked for delivery, have slid by 60% over the past five months.
LME three month aluminium added 0.2% to $2,187 a ton, zinc fell 0.7% to $2,420.50, lead eased 0.3% to $2,095.50, nickel slipped 0.6% to $18,550 and tin was down 1.1% at $25,265.
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