BEIJING: Copper prices continued to rally on Wednesday, hitting more than two-month highs amid upbeat sentiment arising from China’s stimulus and lower inventories, with signs of better demand also lending support.
Three-month copper on the London Metal Exchange was up 0.4% at $9,833.50 per metric ton as of 0329 GMT.
The contract hit $9,913, its highest since July 15, earlier in the session.
The most-traded November copper contract on the Shanghai Futures Exchange was up 1.8% at 77,460 yuan ($11,038.91) a ton, also its highest since mid-July.
China’s central bank lowered the cost of its medium-term loans to banks, a day after it announced plans to lower borrowing costs, inject more funds into the economy, and ease households’ mortgage repayment burden.
The property sector-focussed stimulus also bolstered prospects of demand from the main metal consuming sector, which has been a drag on the world’s second-largest economy.
Meanwhile, consumption of the metal also used in the power and transportation sectors picked up recently, indicated by declining inventories and higher import premiums.
Copper users also purchased for restocking in the run up to the one-week public holiday starting from Oct. 1.
Copper hits two-month high on US rate cut momentum, improving China demand
Citi Research forecast a more than 20% growth in China’s grid investment growth in 2024, which would benefit copper and aluminium demand.
LME aluminium rose 0.3% to $2,563 a ton, zinc jumped 0.7% to $3,029, nickel added 0.4% at $16,770, lead nudged 0.1% higher to $2,086.50, while tin declined 0.6% to $32,490.
SHFE aluminium rose 1.4% to 20,180 yuan a ton, nickel added 2.2% to 128,530 yuan, zinc jumped 3.6% to 24,635 yuan, lead ticked up 0.7% at 16,740 yuan and tin inched 0.1% lower to 260,370 yuan.
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