LONDON: Copper prices edged up on Thursday on hopes of improved demand in China following recent price drops and supply concerns though capping the upside were a stronger dollar and rising stockpiles.
Three-month copper on the London Metal Exchange (LME) was up 0.1% at $9,794.50 per metric ton by 1012 GMT.
Top metals consumer China left its key benchmark lending rates unchanged on Thursday as Beijing’s monetary easing efforts continue to be limited by narrowing interest rate margins and a weakening currency.
China’s onshore yuan finished its domestic session at its lowest level against the dollar since mid-November.
Meanwhile, copper stockpiles in LME-registered warehouses rose to 161,925 tons, their highest level since January 4, after delivery of 3,450 tons, daily LME data showed.
Buoyed by expected demand from the green energy transition, copper hit a record high of $11,104.50 on May 20.
Copper bounces despite inventories jump
Since then, prices have been weighed by sluggish data from China and uncertainty over interest rates. They touched a two-month low of $9,551 on Tuesday.
“The key underlying driver in the copper market is still that of a tight supply function and rising demand for electrification,” Saxo Bank said.
The recent price decline drew some orders from end-users, leading to a drawdown in domestic spot stockpiles, China’s Jinrui Futures said.
Copper inventories in warehouses monitored by the Shanghai Futures Exchange fell by 1.8% to 330,753 tons last week, while China’s May copper cathodes imports rose 17% year on year to 324,530 tons.
LME aluminium added 0.6% to $2,513.50 a ton. Global primary aluminium output rose 3.4% year on year to 6.1 million tons in May, according to the International Aluminium Institute.
Zinc fell 0.6% to $2,850, lead declined 0.7% to $2,183, tin jumped 1.7% to $32,905 and nickel climbed 0.3% to $17,425.
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