LONDON: Copper prices rose for a third session on Friday as demand in top metals consumer China remained healthy and as investors hoped a speech by the US central bank chief would signal interest rate cuts. Benchmark three-month copper on the London Metal Exchange was slightly firmer at $9,725 a metric ton in official open-outcry trading, down from a peak of $10,020.50 touched on July 2, its strongest in more than three months.
“Refined copper for now is exempt from tariffs, so I don’t think there’s going to be much of a dent in demand for copper in general, and Chinese demand for copper remains fairly healthy,” said Nitesh Shah, commodity strategist at WisdomTree.
Last month, US President Donald Trump imposed a 50% tariff on copper products, but left out ores, concentrates and cathodes. In China, the Yangshan copper premium, which reflects demand for copper imported into China, has gained 13% to $51 a ton since August 11.
Investors are awaiting US Federal Reserve Chair Jerome Powell’s speech to the annual Jackson Hole conference in Wyoming due at 1400 GMT.
“If there’s any sign of a dovish bent there, I think that could be very supportive for copper prices as that would maintain demand,” Shah added. Keeping gains in check, however, was a firmer dollar index after some Fed officials appeared lukewarm on Thursday to the idea of a rate cut next month.
A stronger dollar makes commodities priced in the US currency more expensive for buyers using other currencies. LME aluminium also rose, adding 0.1% to $2,586.50 a ton. The anticipation for demand seasonally picking up next month may have boosted aluminium prices, analysts at broker Guosen Futures said on Friday. Among other metals, LME zinc advanced 0.6% to $2,781.50 a ton, lead gained 0.8% to $1,985.50, tin added 0.1% to $33,450, and nickel dipped 0.1% to $14,915.
Comments
Comments are closed for this article.