LONDON: Copper prices extended a rebound on Thursday, boosted by optimism over recovering demand in top metals consumer China as speculators acted on upbeat technical signals.
Three-month copper on the London Metal Exchange (LME) added 0.9% to $8,858 a tonne by 1020 GMT after edging up in the previous session.
Prices had touched their lowest in more than two weeks on Wednesday but closed in positive territory and above the 100-day moving average, a positive technical signal.
“Copper is bouncing from the recent lows we’ve seen and some shorts might be covering ahead of the long Easter weekend,” said WisdomTree commodity strategist Nitesh Shah.
“The fundamentals remain strong and the latest Chinese PMI was pretty positive, with the composite way above the marker for expansion.”
The Caixin/S&P’s composite purchasing managers’ index (PMI), which includes both manufacturing and services activity, rose to 54.5 in March, marking the quickest expansion since June, data showed on Thursday.
Copper prices down with global growth concerns
The latest survey provided some upbeat news after last week the PMI for the manufacturing sector faltered owing to weak export orders.
Other data showed improved demand in China for the metal used in power, construction and air conditioning sectors.
The Yangshan copper premium, which reflects demand for copper imported into China, ticked up to $32.50 a tonne on Tuesday for its first increase since March 17.
Also supporting the market was news that a joint copper mining project by Ecuador’s state-run ENAMI and Chile’s Codelco has been told to suspend operations.
In other metals, LME aluminium advanced 0.7% to $2,350 a tonne, zinc gained 0.5% to $2,802.50 after touching a five-month low on Wednesday, lead rose 0.5% to $2,120 and tin was up 1% at $24,500 while nickel was little changed at $22,700.
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