LONDON: Copper prices rose in London on Monday as the focus shifted to the Federal Reserve’s rate decision this week after top metals consumer China promised to address its tortuous post-COVID recovery.
Three-month copper on the London Metal Exchange was up 0.8% to $8,519.5 per metric ton by 1516 GMT, breaking above its 200-day moving average of $8,492. Copper, which I used in the power and construction sectors, declined 2.6% last week - its biggest weekly fall since mid-May - on China’s modest stimulus measures.
China will optimise property policies, expand domestic demand, speed up local special bond issuance as well as boost demand for autos, the top decision-making body of the ruling Communist Party was quoted as saying by the state news agency.
Beijing did not roll out any specific policy measures.
“With micro fundamentals rather slack at the moment amid weak demand, this leaves the base metals markets still searching for catalysts to break subdued sentiment and solidify stronger demand expectations in the coming months,” JP Morgan analyst Gregory Shearer said.
LME aluminium was up 0.2% to $2,208.5 a metric ton, while tin added 0.4% to $28,620 and nickel jumped 2.8% to $21,345. Lead was up 1.6% at $2,173.5, after touching a one-month high of $2,177.
Zinc gained 1.9% to $2,417.5 after LME daily data showed large inventory cancellations in exchange-registered warehouses, slashing on-warrant stocks by 27 percent.
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