LONDON: Copper prices spiked on Wednesday to their highest level in more than four-and-a-half months on restocking in China and firmer physical demand, but a stronger dollar weighed on the market.
Three-month copper on the London Metal Exchange (LME) was little changed at $8,591 per metric ton by 1200 GMT after touching $8,665, the highest since Aug. 4.
China, the world’s top metals buyer, bought more copper in November. Its copper cathode imports grew by 13.5% from October to 378,791 tons, according to customs data released on Wednesday.
Physical copper premiums, an indicator of spot buying appetite, also rebounded this week.
Demand firmed as copper users looked to replenish stocks and thin inventory in China, analysts at CCB Futures said.
Copper slips, but prospect of tight supplies sustains sentiment
Curbing copper’s upside was a firmer dollar index, making greenback-priced metals more expensive for buyers using other currencies.
LME aluminium dropped for a second consecutive day after surging 8% over the past one week. It was last trading at $2,246.50 a ton, down 0.7%.
Zinc edged up 0.1% to $2,584, lead gained 0.8% to $2,081.50, nickel rose 0.2% to $16,775 and tin added 0.3% to $25,200.
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