BEIJING: Copper prices ticked higher on Tuesday, lifted by concerns of tighter raw material supply and a production cut by Chinese smelters, while upbeat demand outlook following positive domestic manufacturing data also lent some support.
Three-month copper on the London Metal Exchange was up 1.7% at $9,017.50 per metric ton by 0812 GMT. The exchange resumed trading after a long weekend and the Easter Monday holiday.
The most-traded May copper contract on the Shanghai Futures Exchange closed day-time trade 0.6% higher at 73,230 yuan ($10,121.07) per ton, not far from an all-time high of 73,530 yuan hit on March 22. Shanghai copper recorded its best daily gain in two weeks on Monday after an official survey showed China’s manufacturing activity expanded for the first time in six months in March, brightening the demand outlook for industrial metals.
Although trading was generally subdued because of the holiday, sentiment improved due to concerns around further supply tightness of copper concentrate, ANZ analysts said in a note.
That, coupled with a seasonal pickup in copper demand, will support prices, they added. Elsewhere, LME aluminium advanced 1.4% to $2,369 per ton, nickel rose 1.2% to $16,955, zinc was up 2.1% to $2,491, tin added 1.7% to $27,905, while lead lost 0.4% to $2,046. Also weighing on the greenback-priced commodity was a strong US dollar, as stronger-than-expected economic data caused investors to cut their bets on a June rate cut.
SHFE aluminium gained 0.5% to 19,810 yuan a ton, zinc was 1% higher at 21,115 yuan, nickel rose 2% to 132,590 yuan, and tin climbed 0.9% to 227,850 yuan, while lead declined 0.7% to 16,490 yuan.
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