Copper prices rose on Thursday as a softer dollar made metals traded in the US currency cheaper for buyers using other currencies.
Three-month copper on the London Metal Exchange was up 0.7% at $8,679.50 per metric ton by 0315 GMT, while the most-traded September copper contract on the Shanghai Futures Exchange advanced 0.3% to 69,370 yuan ($9,727.95) per metric ton.
The dollar slipped as traders believed the US Federal Reserve has delivered what some expected to be its last rate hike for the year.
The price rally in metals is also fuelled by expectations of Chinese stimulus into the property sector, which consumes a vast amount of metals. However, the poor economic data in China, the world’s biggest metals consumer, and skepticism over how large and effective the Chinese support measure can be have kept a lid on the metals price rally.
China’s industrial profits extended this year’s double-digit pace of declines as waning demand took a toll on companies’ profit margins.
Demand for imported copper into China has been declining, implied by the Yangshan copper premium on Tuesday dropping to $34.50 per metric ton, the lowest since May 22.
Copper hits one-week high on Chinese property stimulus hopes
LME aluminium climbed 1% to $2,235.50 per metric ton, nickel increased 1.3% to $21,860, zinc advanced 1.8% to $2,519, lead edged up 0.3% at $2,158 and tin rose 1.9% to $29,550.
SHFE aluminium increased 0.8% to 18,495 yuan per metric ton, zinc advanced 1.4% to 20,855 yuan, tin climbed 2.9% to 240,350 yuan, while nickel fell 0.4% to 172,030 yuan and lead dipped 0.3% to 15,935 yuan.
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