BEIJING: London copper prices climbed on Monday, buoyed by expectations that top consumer China would roll out more stimulus to revive its economic growth and boost demand.
Three-month copper on the London Metal Exchange was up 0.2% at $8,468.50 per metric ton by 0203 GMT, after a weekly loss on disappointment over modest China stimulus measures.
Investors are awaiting a Politburo meeting in China this week where policy makers might signal more stimulus measures to revive industrial demand. China’s state planner on Monday unveiled measures that seek to promote, encourage and spur activity of private investment.
The most-traded August copper contract on the Shanghai Futures
Exchange dipped 0.2% to 68,470 yuan ($9,525.60) per metric ton.
Near-term demand for copper remains lackluster in the world’s top consumer.
Copper eases on disappointment on Chinese stimulus
Operation rates among copper product producers in China are seen lower in July, some even below last year’s July level, CITIC Futures said in a note. Copper inventories on SHFE declined 5.8% last Friday after rising for three weeks in a row.
Copper premium in Yangshan dropped to a two-month low of $46 a metric ton last Friday, indicating weaker import appetite.
The market is also awaiting interest rate decisions from the US Federal Reserve and the European Central Bank this week.
LME aluminium gained 0.2% to $2,209 a metric ton, tin climbed 0.4% to $28,595, zinc was up 0.3% at $2,379, nickel rose 1.7% to $21,130, while lead nudged down 0.2% to $2,134.50.
SHFE aluminium ticked up 0.3% to 18,335 yuan a metric ton, lead added 0.4% at 15,935 yuan, nickel rose 0.5% to 170,530 yuan, while tin slipped 0.3% to 232,800 yuan and zinc dipped 0.2% to 20,110 yuan.
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