BEIJING: Copper prices opened the week on a higher note, as fears of a US recession faded following a batch of strong data last week and signs of improving demand in top consumer China.
Three-month copper on the London Metal Exchange gained 1.1% to $9,213 per metric ton by 0729 GMT, after recording its first weekly gain in six last week.
The most-traded September copper contract on the Shanghai Futures Exchange added 0.4% to 73,900 yuan ($10,347.53) a ton. Last week, reports on retail sales, inflation and producer prices helped allay fears of an economic downturn in the United States sparked by weaker-than-expected employment data at the start of the month.
Minutes of the Federal Reserve’s July policy meeting and Chair Jerome Powell’s speech at Jackson Hole are likely to be the main drivers of currency movement and investor sentiment this week. In China, copper users raised purchases as prices dropped, and ahead of traditional strong autumn demand.
Refined copper rod producers ramped up their operations last week at a better-than-expected pace, according to a survey by Shanghai Metals Market (SMM).
Deliverable copper stocks on SHFE, having hovered around a four-year peak, declined in recent weeks to a five-month low on Friday. The main union at BHP’s Escondida copper mine in Chile agreed to management’s sweetened wage offer on Friday, leading the union to suspend its strike, easing concerns about global supplies of the metal.
LME aluminium gained 1.2% to $2,393.50 a ton, tin added 1% to $32,210, zinc increased 1.2% to $2,792.50, lead climbed 1% to $2,056.50 and nickel nudged 1.3% higher to $16,580. SHFE aluminium rose 1.5% to 19,580 yuan a ton, zinc was 0.5% higher at 23,345 yuan, lead dipped 0.1% at 17,660 yuan, tin gained 0.5% to 263,810 yuan and nickel added 1.1% to 130,360 yuan.
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