Copper prices fell in London on Friday but were set for their best weekly gain in more than four months, on hopes of a rebound in demand for metals after Chinese officials pledged stimulus to boost the economy.
Three-month copper on the London Metal Exchange fell 0.2% to $10,062.50 per metric ton by 0319 GMT.
On a weekly basis, the contract was up 6.4%, on track for its biggest gain since the week of May 13.
The most-traded November copper contract on the Shanghai Futures Exchange climbed 2.1% to 79,020 yuan ($11,263.95) a ton. The contract was set for a third straight weekly gain.
Beijing rolled out a huge stimulus package and supportive measures this week to revive the economy, including lowering interest rates, injecting liquidity into banks, and potentially issuing special sovereign bonds worth more than $280 billion.
More fiscal measures are expected to be announced before China’s week-long holidays starting on Oct. 1.
The premium to import copper into China stayed firm at $65 a ton, indicating solid demand from the world’s top consumer of the metal.
However, China’s industrial profits swung back to a sharp contraction in August for their biggest decline this year, partly due to a lack of demand.
Copper strides to 11-week peak after China unveils fiscal stimulus
The bleak data emphasised struggles in China’s economy, but also firmed up the case for further stimulus, which in turn could boost metals futures prices.
LME aluminium rose 1% to $2,636.50 a ton, nickel edged up 0.5% at $16,820, while zinc was flat at $3,099, lead edged up 0.1% at $2,138.50 and tin was unchanged at $32,435.
SHFE aluminium rose 1.7% to 20,430 yuan a ton, zinc climbed 2.4% to 25,095 yuan, lead advanced 1.3% to 16,875 yuan, tin increased 0.8% to 258,180 yuan while nickel edged up 0.1% at 128,540 yuan.
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