LONDON: Prices for copper rose in London on Wednesday as demand prospects from top consumer China improved and the US dollar retreated after a survey signalled weakening US consumer demand.
Three-month copper on the London Metal Exchange (LME) was up 1.1% at $8,451 per metric ton at 1608 GMT.
“Copper prices trade higher for a fifth straight session, helped by surprisingly upbeat copper consumption data in China, speculation about more support measures from the Chinese government and the currency intervention that has seen the yuan strengthen against the dollar,” said Ole Hansen, head of commodity strategy at Saxo Bank.
Providing further support for the metal used in power and construction, stockpiles monitored by the three major futures exchanges are just above a 15-year low at 170,000 tons, he added.
Meanwhile, the downturn in euro zone business activity has deepened more than expected this month in a broad-based fall across the region, particularly in Germany, Europe’s largest economy, a survey showed.
In the United States, business activity approached the stagnation point in August, with growth at its weakest since February as demand for new business in the vast service sector contracted, S&P Global said.
Its flash US Composite PMI index, which tracks manufacturing and service sectors, could be viewed positively by the Federal Reserve, which is keen to see activity cool to lower inflation.
The US currency index reversed earlier strong gains after the data. A weaker US currency makes dollar-priced metals more attractive for buyers holding other currencies.
On the technical front, copper broke through resistance at the 21-day moving average of $8,435.
LME aluminium was up 0.1% at $2,180 a ton, zinc rose 1.8% to $2,374.50, lead gained 1.6% to $2,187 while nickel climbed 2.2% to $20,950 and tin added 0.1% to $26,140.
Prices of nickel ore in top producer Indonesia has risen in recent weeks, local buyers said, after an investigation into mining quotas disrupted production.
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