LONDON: Copper prices hit a two-week high on Thursday, buoyed by upbeat trade data from top metals consumer China and a weaker dollar after US data raised hopes the Federal Reserve would halt interest rate hikes.
Three-month copper on the London Metal Exchange (LME) was up 1.5% at $9,050 a tonne by 1600 GMT after touching its highest since March 30.
The dollar index fell to a two-month low on Thursday after US data showed that US producer prices unexpectedly fell in March while US weekly jobless claims increased more than expected.
The softer dollar makes commodities priced in the US currency cheaper for buyers using other currencies.
Investors also welcomed data showing China’s exports surged unexpectedly in March, snapping five straight months of declines and surprising economists who had predicted a 7% fall in a Reuters poll.
“The China data is superficially bullish in the sense that the economy is doing a lot better than people thought previously,” said Dan Smith, head of research at Amalgamated Metal Trading.
“But I think this rally will be quite short-lived. The China macro data looks strong, but the actual base metals sector definitely looks weak.”
Utilisation rates at copper fabricators went up in March but have been retreating, consistent with a traditional seasonal peak for the metals sector in the spring and an easing as summer approaches, Smith added.
The Yangshan copper premium, which reflects demand for copper imported into China, eased to a one-month low of $28 a tonne.
China’s March copper imports fell 19% from a year earlier, customs data showed on Thursday, as domestic production climbed and higher global prices restrained interest.
Among other metals, LME aluminium gained 2% to $2,372 a tonne, zinc climbed 2.1% to $2,844.50, nickel added 0.5% to $23,690, tin advanced 1.3% to $24,340 and lead rose 0.8% to $2,145.50.
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