Copper prices hit their highest in more than a week on Thursday as the Chinese ramped up purchases ahead of a long public holiday, and nickel advanced on supply disruption threat from Russia.
Three-month copper on the London Metal Exchange rose 1.3% to $9,205 per metric ton by 0606 GMT, while the most-traded October copper contract on the Shanghai Futures Exchange advanced 1.6% to 73,910 yuan ($10,381.49) a ton.
Earlier in the session, LME copper hit $9,207, the highest since Sept. 3, and SHFE copper climbed to a level not seen since Sept. 2 at 73,930 yuan.
“Local (Chinese) copper premiums have been lifting. SHFE stocks have been drawing down. These are helping,” Sandeep Daga, a director at Metal Intelligence Centre said.
The import premium for copper in China rose to $65 a ton, compared to a discount of $20 a ton in May. SHFE copper inventories dropped to 215,374 tons, the lowest since March 1.
“We have seen some buying interests from the spot market in China recently,” said analyst Matt Huang at broker BANDS Financial, adding that demand is supported by purchases made ahead of a long holiday in China in early October.
Copper prices buoyed by US rate cut expectation, softer dollar
However, further price increases might dampen the demand, Huang added.
LME nickel rose as much as 1% to $16,270 a ton, the highest since Sept. 4.
SHFE nickel climbed as much as 3.5% to 125,090 yuan. Russian President Vladimir Putin said on Wednesday that Moscow should consider limiting exports of nickel.
Russia is a major nickel supplier to China and Europe. LME aluminium climbed as much as 1.5% to a one-week high at $2,406 a ton.
Zinc hit its highest since Sept. 4 at $2,819, while lead advanced 1.1% to $2,010.50 and tin increased 1.3% to $31,350.
SHFE aluminium jumped as much as 1.9% to 19,715 yuan a ton, the highest since Sept. 2.
Zinc climbed as high as 3.4% to 23,505 yuan. SHFE lead rose 1.7% to 16,745 yuan and tin advanced 1.8% to 255,910 yuan.
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