Copper prices in London edged up on Tuesday, helped by a better manufacturing data from China and hope for stimulus from the world’s biggest metals consumer.
Three-month copper on the London Metal Exchange (LME) rose 0.3% to $8,584 per metric ton by 0420 GMT, while the most-traded February copper contract on the Shanghai Futures Exchange (SHFE) eased 0.3% to 68,780 yuan ($9,652.79) per metric ton.
China’s factory activity expanded at a quicker pace in December due to stronger gains in output and new orders, but business confidence for 2024 remained subdued, a private-sector survey showed.
However, a separate survey released on Sunday showed China’s manufacturing activity shrank for a third straight month in December, clouding the outlook for the country’s economic recovery but raising the case for fresh stimulus measures.
The manufacturing industry is one of the major consuming sectors of industrial metals.
Copper prices were supported by low inventories in SHFE warehouses, which were at 30,905 tons by the end of the year and more than half of the stock level at end-2022.
Copper hovers near five-month high on soft dollar
However, prices of metals were under slight pressure from a firm dollar index which rose on the first trading day of the year as attention turned to economic data this week that may provide clues on the Federal Reserve’s next moves.
A stronger dollar makes greenback-priced metals more expensive to holders of other currencies.
LME aluminium fell 0.5% to $2,371.50 a ton, nickel eased 0.1% to $16,590, zinc dropped 1.1% to $2,628.50, tin declined 0.9% to $25,180 while lead rose 0.5% to $2,078.
SHFE aluminium dipped 0.2% to 19,455 yuan a ton, nickel dropped 0.9% to 127,060 yuan, zinc eased 0.1% to 21,490 yuan, tin declined 1.2% to 209,440 yuan while lead rose 0.8% to 15,990.
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