London copper prices edged higher on Monday, underpinned by falling inventories in London Metal Exchange (LME) warehouses and on hopes of further economic stimulus from the Chinese government.
Three-month copper on the LME edged up 0.1% to $9,030 a tonne by 0403 GMT, while the most-traded May copper contract on the Shanghai Futures Exchange dipped 0.1% to 69,960 yuan ($10,174.37) a tonne.
LME copper inventories dropped to 51,550 tonnes, their lowest since August 2005. Stockpiles of the metal in SHFE warehouses have also been falling.
“Weak inflation data in China also stoked hopes that Beijing would increase stimulus measures to support economic growth,” ANZ analysts said in a report.
“Sentiment across the broader metals market was supported by stronger risk appetite and a weaker US dollar.” SHFE tin surged 11.3% to 217,240 yuan a tonne and LME tin jumped 8.3% to $26,925 a tonne on a possible ore mining ban in Myanmar.
Copper prices retreat from 7-week high
LME nickel rose 2.5% to $24,740 a tonne, lead fell 0.9% to $2,150 a tonne, aluminium advanced 0.1% to $2,387 a tonne and zinc increased 0.2% to $2,862 a tonne.
SHFE aluminium rose 0.4% to 18,775 yuan a tonne, zinc was up 0.4% at 22,430 yuan a tonne, lead increased 0.7% to 15,390 yuan a tonne and nickel jumped 3.5% to 191,050 yuan a tonne.
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