Copper prices rose on Tuesday as bargain hunters scooped up the metal after prices hit an eight-week low, although recent weak Chinese economic activity data weighed on the market.
Three-month copper on the London Metal Exchange (LME) rose 0.7% to $9,729 per metric ton by 0345 GMT, while the most-traded July copper contract on the Shanghai Futures Exchange (SHFE) eased 0.1% to 78,770 yuan ($10,856.59) a ton.
LME copper fell for three straight sessions to Monday, hitting its lowest level since April 18 at $9,587 in the previous session.
“The rebound from $9,600 coincided with the US equity markets getting bid. Hence, there were some bargain hunters bidding up copper at the same time and we touched above $9,750 this morning,” said a trader. Demand prospects for the industrial metal have been clouded by the latest data from China, where May industrial output growth slowed to 5.6%, missing a forecast of 6%.
Meanwhile, the premium to import copper into top consumer China remained below zero, reflecting weak physical demand.
Copper nears eight-week low on Chinese factory data
LME aluminium rose 0.2% to $2,507.50 a ton, nickel edged up 0.5% to $17,550, zinc climbed 0.7% to $2,836, lead increased 0.7% to $2,172, tin rose 0.8% to $32,400.
SHFE aluminium rose 0.2% to 20,460 yuan a ton, zinc advanced 1% to 23,540 yuan, lead increased 1.7% to 18,935 yuan, tin jumped 0.8% to 269,050 yuan while nickel fell 0.5% to 135,510 yuan.
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