BEIJING: London copper rose on Monday after a weekly loss, as signs of economic stabilisation in China sparked demand hopes, although a weaker yuan and rising inventories weighed on market sentiment.
Three-month copper on the London Metal Exchange was up 0.4% at $8,275.50 per metric ton, as of 0204 GMT, after losing 3% in the previous week.
The most-traded October copper contract on the Shanghai Futures Exchange eased 0.2% to 68,730 yuan ($9,383.45) per ton.
China’s consumer prices returned to positive territory in August while factory-gate price declines slowed, data showed on Saturday, as deflation pressures ease.
Earlier last week, trade data showed declines in the country’s exports and imports slowed.
The world’s second-largest economy has rolled out a raft of measures to support its crisis-hit property market, with at least three major Chinese cities last week removing restrictions on home buying. Meanwhile, a shaky yuan weighed on the copper market.
The Chinese currency hit its weakest since the global financial crisis on Friday amid capital outflows pressure. A weaker yuan generally makes it more expensive to import the dollar-priced metals. Copper stocks on SHFE rose for a third consecutive week on Friday to 54,955 tons.
Investors were also awaiting US inflation data due out later this week for further clarity over interest rate hikes.
LME aluminium gained 0.4% to $2,192 a ton, zinc edged up 0.1% to $2,446.50, nickel moved up 0.3% to $20,105, while tin dropped 0.7% to $25,400 and lead slid 0.3% to $2,220.
SHFE aluminium was up 0.3% at 19,120 yuan a ton, zinc dipped 0.2% to 21,385 yuan, lead shed 0.1% to 17,000 yuan, nickel fell 0.7% to 165,750 yuan, and tin lost 1.9% at 216,140 yuan.
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