Base metals prices rose on Friday, tracking gains in the equities market and supported by rate cut hopes and better-than-expected US data that relieved some demand worries.
Three-month copper on the London Metal Exchange rose 1.4% to $8,915 per metric ton by 0408 GMT, while the most-traded September copper contract on the Shanghai Futures Exchange advanced 1.4% to 71,920 yuan ($10,022.44) a ton.
US jobless claims dropped more than expected last week, softening fears of a looming economic downturn that will dampen physical metal demand.
Still, US Federal Reserve policymakers are increasingly confident that inflation is cooling enough to allow interest-rate cuts ahead, which is supportive for metals prices.
However, on a weekly basis, copper is set for the fifth straight fall on both LME and SHFE.
Copper steadies on raw material shortage and interest rate hopes
Both contracts hit their lowest since March earlier in the week.
Metals prices might continue to rebound for a few more sessions, but there is limited catalyst for higher prices, said a trader, pointing to the LME copper inventories that surged to their highest in September 2019.
“I think we’re heading lower (in general) but in a more orderly fashion. The bounces in the market so far are just due to the sudden collapse after the first unwinding of carry trade,” said the trader.
The LME cash copper contract was trading at a $123.58-a-ton discount to the three-month contract, reflecting abundant near-term supply.
LME aluminium increased 1.3% to $2,302.50 a ton, nickel climbed 1.6% to $16,405, zinc advanced 1.9% to $2,696.50, lead rose 2.1% to $2,006 and tin jumped 2.6% to $31,290.
SHFE aluminium rose 1.4% to 19,175 yuan a ton, nickel advanced 2.6% to 131,230 yuan, zinc climbed 3.4% to 22,630 yuan, lead increased 3% to 17,855 yuan and tin jumped 4.8% to 257,320 yuan.
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