Copper prices rose further on Monday, buoyed by signs of tightening supply and a softer US dollar.
Three-month copper on the London Metal Exchange rose 0.24% to $9,926 per metric ton by 0229 GMT, heading for a third straight session of gains.
The most-traded copper contract on the Shanghai Futures Exchange gained 0.66% to 79,740 yuan ($11,147.93) a ton, rising for a second straight session.
Copper prices extended gains as imports arbitrage has turned profitable, with a recovery in spot premium suggesting tighter supply, analysts from ANZ said in a note.
“Prospects of slowing refined copper production also supported market sentiment,” they said.
Copper production in top producer Chile edged up 0.3% year-on-year in July, while manufacturing production rose 2.7%, sharply slower than the 12% increase recorded in the previous month.
The dollar index, which measures the currency against six major peers, eased 0.04% to 97.79, having clocked a monthly decline of more than 2% on Friday.
A softer dollar makes greenback-denominated assets more affordable to holders of other currencies.
China’s manufacturing sector contracted for the fifth consecutive month in August, as exports declined due to factors such as US tariffs, a property sector downturn, and weak job security.
Profits at China’s industrial firms fell for the third straight month in July, underscoring the challenges businesses face amid sluggish demand and ongoing factory-gate deflation.
Among other London metals, aluminium dipped 0.15% to $2,611.5 a ton, and tin lost 0.74% to $34,760, while nickel gained 0.42% to $15,485, lead strengthened 0.13% to $1,993.5, and zinc rose 0.16% to $2,823.5.
SHFE aluminium dipped 0.51% to 20,625 yuan, lead eased 0.06% to 16,840 yuan, and tin lost 1.16% to 272,620 yuan, while nickel climbed 1.67% to 123,320 yuan, and zinc gained 0.36% to 22,175 yuan.
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