Copper prices were firmer in Asian trade on Friday, on track for weekly gains, as top metals consumer China boosted policy support for a sputtering economic recovery, with the metal holding on to the gains following a slew of encouraging Chinese indicators.
China released monthly new home sales, property investment and industrial production data on Friday.
Industrial output grew 4.5% in August from a year earlier, accelerating from the 3.7% pace seen in July.
Three-month copper on the London Metal Exchange was up 0.9% at $8,497 per metric ton, as of 0405 GMT, while the most-traded October copper contract on the Shanghai Futures Exchange added 0.8% to 69,810 yuan ($9,619.28) per metric ton.
China’s central bank said on Thursday it would cut the amount of cash that banks must hold as reserves for the second time this year to boost liquidity - the latest in a series of stimulus measures, including steps to spur housing demand.
Still, a strong US dollar, which makes greenback-priced commodities more expensive for buyers using other currencies, and high copper inventories limited gains of the metal used in power and construction.
Copper firms ahead of interest rate decisions
The dollar held steady in Asia on Friday, edging off slightly from overnight gains against peers, as the yuan strengthened in the wake of some market-beating economic data out of China.
Copper stocks in LME-registered warehouses are at their highest since October 2022, after a sharp growth over July-September.
“While positive news out of China is supporting positive momentum on the day of the release, each incremental impact on base metals pricing is diminishing, given a continued deterioration of market confidence in economic recovery this year,” analysts at Sucden Financial wrote in a report.
LME aluminium was up 0.1% at $2,227.50 a ton, tin slipped 0.4% to $25,800, zinc gained 0.1% to $2,571.50, lead edged 0.7% higher to $2,260.50, while nickel lost 0.01% to $20,340.
In Shanghai, aluminium added 0.8% to 19,370 yuan a ton, zinc rose 0.7% to 21,975 yuan, lead climbed 1.4% to 17,110 yuan, nickel advanced 1% to 162,620 yuan, while tin gained 0.9% to 218,900 yuan.
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