Copper prices rose to a one-week high on Thursday, helped by a weaker US dollar, declining inventories and prospects of stimulus measures to support an economic recovery in top consumer China.
Three-month copper on the London Metal Exchange was up 0.5% at $8,436.50 a tonne by 0319 GMT, after hitting its highest since Dec. 15 earlier in the session.
The most-traded January copper contract on the Shanghai Futures Exchange rose 0.8% to 66,160 yuan ($9,482.99) a tonne.
“Metals are supported by a refreshed pledge by People’s Bank of China to support the property sector, the weaker dollar and on bullish US equities,” a Singapore-based metals trader said.
“(There is) a bit of a resistance at $8,450 for copper this morning, but the market seems quite happy to settle around $8,440 till mid-day break.”
The dollar was down 0.3% against its rivals, making the metals priced in the US currency more attractive to non-dollar buyers.
Copper holds its ground despite China’s Covid wave
China will seize the time moment to implement policy measures to support the economy, aiming for an improvement in growth in early 2023, state media on Wednesday quoted the cabinet as saying.
The latest data available show copper stocks in LME warehouse fell to their lowest since Nov. 11 at 81,350 tonnes.
Asian stocks climbed into the black on Thursday after an upbeat reading on US consumers cheered Wall Street investors.
Meanwhile, China may be struggling to keep a tally of COVID-19 infections as the country experiences a big spike in cases, a senior World Health Organization official said on Wednesday, a surge that could seriously dent the world’s number two economy.
Among other metals, LME aluminium climbed 0.3% to $2,399.50 a tonne, zinc was flat at $3,008.50, lead eased 0.3% to $2,207.50, and tin edged up 0.1% to $24,085.
SHFE aluminium gained 0.1% to 18,645 yuan a tonne, zinc fell 0.4% to 23,410 yuan and nickel rose 2.4% to 220,500 yuan, and tin was up 0.6% at 195,770 yuan.
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