HANOI: Copper prices climbed to four-week highs on Monday due to signs of steadying growth in top consumer China, declining inventories and a softer dollar ahead of important data from China’s manufacturing sector.
Traders said copper and other industrial metals were also boosted by funds cutting bets on lower prices. Benchmark copper on the London Metal Exchange (LME) traded 1.1% higher at $8,185 a metric ton in official rings, having earlier hit $8,231, the highest since Oct. 2.
“China sentiment is improving, but volumes are light so copper’s movements are exaggerated,” one metal trader said. “It helps that the dollar appears to have peaked.”
Latest data from China showed profits at industrial firms rose for a second month in September due to expanding activity. Surveys of purchasing managers in China’s manufacturing segment due later this week are expected to show expansion again in October, suggesting recent government support measures have helped boost sentiment.
China last week approved a one trillion yuan ($137 billion) sovereign bond issue and passed a bill allowing local governments to front load part of their 2024 bond quotas to support investment.
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