BEIJING: Copper prices in London bounced back on Monday from a weekly loss, supported by dwindling stocks of the metal globally, although a firm US dollar capped gains.
Three-month copper on the London Metal Exchange added 0.9% $8,464 per metric ton by 0157 GMT, after posting a 2.1% weekly decline on Friday.
Last week, a high premium in China hit demand and expectations of another interest rate hike by the US Federal Reserve’s July meeting dragged down prices, Guangda Futures analysts said in a note.
Prices are likely to bounce back from now til early July after the factors had been priced in and investor sentiment improved.
Copper heads for weekly drop on hawkish rate hikes
Global visible stocks for copper continued to slide last week.
Inventories on SHFE, SHFE bonded warehouses, LME and COMEX together dropped 7% for the week to 236,000 metric tons on Friday.
The world’s largest copper producer Codelco has halted some copper mining operations in central Chile due to heavy rains last week, ING analysts said in a note.
However, the dollar hovering around a one-week high also weighed on the market, making it less attractive to buy the greenback-priced commodity.
The most-traded July copper contract on the Shanghai Futures Exchange trimmed 0.7% to 68,550 yuan ($9,511.19) per metric ton, resuming trading after a long weekend in China.
LME aluminium gained 0.6% at $2,186.50 a metric ton, tin added 0.4% to $26,585, while zinc shed 0.3% to $2,358.50, lead nudged down 0.3% to $2,116, and nickel was little changed at $21,310.
SHFE aluminium fell 1.7% to 18,165 yuan a metric ton, zinc lost 1.1% at 19,995 yuan, nickel lost 2.3% to 163,910 yuan, tin slipped 1.7% at 214,050 yuan, while lead climbed 0.3% to 15,625 yuan.
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