BEIJING: Copper prices in Shanghai climbed on Wednesday to their highest in more than two weeks, aided by brighter demand perspective from top consumer China, while London metals eased ahead of the US Federal Reserve’s policy decision due later in the day.
The most-traded August copper contract on the Shanghai Futures Exchange was up 0.5% at 69,150 yuan ($9,664.71) per metric ton, as of 0402 GMT, its highest since July 11.
Investors hoped to see better demand of the metal as China’s top leaders pledged on Monday to ramp up policy support for the economy.
Power and air-conditioning sectors will be the main drivers of copper demand, Li Ye, an analyst at Shenyin & Wanguo Futures said in a note, adding that weakness in auto and property sectors is likely to last in the near term.
Passenger car sales in July are expected to drop 4.8% to 1.73 million units year-on-year, according to China Passenger Car Association.
Three-month copper on the London Metal Exchange slid 0.6% at $8,622.50 per metric ton, reversing gains in the previous session.
Most market participants expect the Fed to deliver a 25-basis-point rate hike when the meeting concludes on Wednesday, and will be closely looking for any clues on future rate path.
Copper hits one-week high on Chinese property stimulus hopes
The dollar index ticked higher, adding pressure on copper prices as a stronger dollar makes the greenback-priced metal less affordable for buyers holding other currencies.
LME aluminium shed 0.3% at $2,232.50 a metric ton, tin lost 1.3% to $28,535, zinc moved 0.7% lower to $2,471, lead was down 0.7% at $2,163.50, and nickel fell 1.1% to $22,210.
SHFE aluminium dipped 0.1% to 18,305 yuan a metric ton, tin slipped 0.7% to 232,080 yuan, lead slipped 0.6% to 16,020 yuan, while zinc rose 1.1% to 20,515 yuan, nickel climbed 1.1% to 172,880 yuan.
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