Prices of most nonferrous metals rose on Tuesday as investors and traders bet on improving demand from top consumer China after leaders pledged support to its troubled property market.
Three-month copper on the London Metal Exchange advanced 1% to $8,597.50 per metric ton by 06098 GMT, having hit a one-week high of $8,604 earlier in the session.
The most-traded August copper contract on the Shanghai Futures Exchange climbed 0.9% to 68,970 yuan ($9,653.58) per metric ton.
The contract also hit its highest since July 17 earlier in the session at 69,080 yuan.
“There are more signs that the government will boost its property support… (Most) of the Chinese net worth is in their property, so this will support consumption,” said a metals trader.
Chinese top leaders pledged on Monday to ramp up policy support for the economy, with investors hoping for further easing in restrictions in the troubled property market, a sector that consumes a vast amount of metals.
Copper falls as China promises tortuous economic recovery
LME aluminium advanced 0.8% to $2,226.50 per metric ton, zinc increased 1.1% to $2,443, tin was up 0.6% at $28,760, while nickel fell 0.1% to $21,415 and lead was down 0.1% at $2,174.
SHFE aluminium rose 0.7% to 18,390 yuan per metric ton, zinc was up 1.8% at 20,430 yuan and tin climbed 0.8% to 234,200 yuan.
SHFE nickel climbed as much as 2% to 172,600 yuan per metric ton, a level unseen since May 9, and SHFE lead reached its highest since December 2022 of 16,210 yuan.
“(The price rally is) holding and stable with good volume.
It looks like a solid rebound,“ the trader said. China’s major state-owned banks were seen selling US dollars to buy yuan in early Asian trade to prop up the Chinese currency, three people with direct knowledge of the matter said.
A stronger yuan makes dollar-denominated metals more affordable for Chinese buyers.
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