LONDON: Copper prices spiked on Wednesday to their highest level in more than four-and-a-half months on restocking in China and firmer physical demand, but a stronger dollar weighed on the market.
Three-month copper on the London Metal Exchange (LME) was down 0.3% at $8,567 per metric ton during open outcry trading after touching $8,665, the highest since Aug. 4. China, the world’s top metals buyer, bought more copper in November. Its copper cathode imports grew by 13.5% from October to 378,791 tons, according to customs data released on Wednesday.
Physical copper premiums, an indicator of spot buying appetite, also rebounded this week. Demand firmed as copper users looked to replenish stocks and thin inventory in China, analysts at CCB Futures said.
Curbing copper’s upside was a firmer dollar index, making greenback-priced metals more expensive for buyers using other currencies. LME aluminium dropped for a second consecutive day after surging 8% over the past one week.
It was last trading at $2,243 a ton, down 0.9%. The spread between cash and three-month aluminium contract narrowed after the gap reached its widest level of $54.7 in four months on Tuesday.
Zinc edged down 0.2% to $2,575.5, lead gained 0.9% to $2,082, nickel went down 0.9% to $16,660 and tin dropped 0.4% to $25,050.
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