BEIJING: Copper prices climbed on Wednesday on expectations of better demand from top consumer China, while a steady US dollar and rising inventories limited gains.
Three-month copper on the London Metal Exchange was up 0.5% to $10,556.50 per metric ton by 0313 GMT, while the most-traded July copper contract on the Shanghai Futures Exchange gained 0.3% to 85,020 yuan ($11,729.81) a ton.
The latest Chinese measures to support its property sector boosted copper demand prospects. Some of the megacities, including Shanghai, have lowered the minimum downpayment ratios for home buyers and relaxed some restrictions.
The International Monetary Fund on Wednesday upgraded its forecast of China’s economic growth to 5% this year after a “strong” first quarter, from an earlier forecast of 4.6%.
The dollar was stable on Wednesday on wagers the US Federal Reserve is unlikely to cut rates until later this year ahead of crucial inflation readings this week.
A stronger dollar makes it more expensive to buy the greenback-priced commodity. Higher inventories in China amid strong output and soft physical demand were also weighing on the market.
Copper climbs, but high China stocks suggest ample supplies
LME aluminium increased 0.4% to $2,740 a ton, nickel added 0.2% to $20,500, zinc was up 0.8% at $3,124, tin rose 0.7% to $33,150, while lead slid 0.3% to $2,337.
SHFE aluminium increased 0.9% to 21,375 yuan a ton, zinc rose 1.4% to 25,235 yuan, lead advanced 0.7% to 18,945 yuan and tin was up 1.2% at 281,470 yuan, while nickel dipped 0.5% to 154,730 yuan.
Comments
Comments are closed for this article.