London copper prices edged up on Wednesday as tight supplies and easing concerns about Chinese demand lent the metal some support, but a firmer dollar capped gains.
Three-month copper on the London Metal Exchange rose 0.3% to $9,736 a tonne by 0735 GMT.
The most-traded January copper contract on the Shanghai Futures Exchange was up 0.4% at 71,220 yuan a tonne.
Volumes were expected to be low heading into the US Thanksgiving holiday.
The dollar index was steady after hitting a more than 16-month peak on Tuesday as Federal Reserve Chair Jerome Powell was nominated for a second term, fuelling expectations of sooner interest-rate hikes.
A firmer dollar makes commodities priced in the dollar more expensive for buyers using other currencies.
"Improving power supply in China is easing some of downstream demand concerns (for copper). We expect downside to remain protected as tightness is likely to persist in the near-term," said ANZ analyst Soni Kumari.
Copper stocks in ShFE-registered warehouses were at 34,918 tonnes, the lowest since June 2009.
On-warrant LME copper inventories edged up slightly to 62,775 tonnes, but still down 73.7% from 238,725 tonnes seen in August.
"Metals prices should (also) benefit from latest announcement from China to ease fiscal policy and more supports for property market," Kumari added.
China will keep liquidity reasonably ample and reduce funding costs, especially for small firms, in a bid to support the slowing economy, while some Chinese banks have been told to issue more loans to property firms for project development.
FUNDAMENTALS
Indonesia may stop tin exports in 2024 as part of efforts to attract investment into the resource processing industry and improve the country's external balance, President Joko Widodo said.
ShFE aluminium edged 0.3% higher to 19,250 yuan a tonne, nickel rose 1.4% to 153,430 yuan a tonne and lead gained 2.1% to 15,250 yuan a tonne.
LME aluminium was up 0.9% at $2,691.50 a tonne, nickel rose 1.1% to $20,565 a tonne, zinc was 0.7% higher at $3,325.50 a tonne and lead gained 1% to $2,276 a tonne.
Comments
Comments are closed for this article.