Shanghai copper prices rose on Monday as low inventory levels provided a cushion after prices fell for three straight weeks due to weaker-than-expected demand in China.
The most-traded June copper contract on the Shanghai Futures Exchange was up 0.8% to 67,120 yuan ($9,706.44) a tonne as of 0420 GMT, aluminium advanced 0.4% to 18,390 yuan a tonne and nickel rose 0.3% to 183,870 yuan a tonne.
SHFE zinc increased 1.6% to 21,485 yuan a tonne, tin was 0.4% higher at 207,630 yuan a tonne, while lead fell 0.2% to 15,285 yuan a tonne.
Copper inventories in SHFE warehouses fell to their lowest levels since Jan. 13 to 134,919 tonnes on Friday, equivalent to over three days of China’s annual demand last year, data by the World Bureau of Metal Statistics showed.
Weak demand pushes copper towards third straight weekly loss
Copper prices will likely be supported by low stocks, the maintenance of smelters in May, potentially better demand post the Labour Day holiday as well as the metal becoming cheaper in the past few weeks, brokerage Huatai Futures said in a report.
SHFE copper prices have lost 4.8% since April 17, while the three-month copper contract on the London Metal Exchange was down 6.6% since April 14.
The LME is closed for a public holiday on Monday to celebrate the coronation of Britain’s King Charles and will resume trading on May 9.
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