Copper prices in London rose on Tuesday, hovering near a key resistance level of $10,000 a metric ton, buoyed by funds’ buying amid Chinese authorities’ support pledges and risk-on sentiment spilling over from the equities markets.
Three-month copper on the London Metal Exchange (LME) rose 0.7% to $9,978 a ton by 0759 GMT, while the most-traded June copper contract on the Shanghai Futures Exchange (SHFE) closed down 0.5% at 80,500 yuan ($11,156.54) a ton.
Risk-on sentiment from the equities markets spilled over to metals market, and China’s Shenzhen city relaxing home purchase restrictions in some districts also boosted appetite for metals used in construction, said a metals trader.
“The funds should continue to be the margin buyer, moving flat price higher to offset any producer hedging,” the trader said. Chinese policymakers last week promised to step up support for the economy, while traders also renewed their hopes for US rate cuts following a softer-than-expected US labor market report on Friday.
LME aluminium rose 0.7% to $2,569 a ton, nickel fell 0.9% to $19,070, zinc advanced 0.9% to $2,928, lead climbed 1% to $2,237 and tin jumped 1.3% to $32,395.
SHFE nickel was nearly flat at 144,170 yuan a ton, zinc rose 0.1% to 23,275 yuan, lead climbed 1.3% to 17,735 yuan, tin advanced 0.3% to 260,480 yuan and aluminium eased 0.2% to 20,635 yuan.
Copper rebounds on weak dollar
Despite rising nickel inventories in both LME and SHFE warehouses, prices of the metal on both bourses hit their highest in two weeks earlier in the session.
Last month, top consumer China announced subsidies for scrapping old cars in exchange for new ones to boost car sales, especially for electric vehicles, which consume nickel in their batteries.
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