London copper rose on Wednesday, supported by a softer dollar and as prices rebounded from a psychological support level and on some short-covering.
Three-month copper on the London Metal Exchange (LME) was up 0.5% at $9,578.50 per metric ton by 0401 GMT, rebounding from a three-week low hit in the previous session.
The most-traded November copper contract on the Shanghai Futures Exchange (SHFE) eased 0.4% to 76,610 yuan ($10,770.12) a ton, tracking overnight losses in London.
The dollar index eased slightly on Wednesday, albeit it was still trading near a two-month peak on expectations that US interest rate cuts would be gradual.
A softer dollar makes greenback-priced metals cheaper for holders of other currencies.
“Everyone is just waiting for various announcements (from China),” said a trader, adding that $9,500 is a technical and psychological support level.
“Price is just fluctuating and chopping about,” the trader added. Another trader added that there was some short-covering ahead of a press conference on China’s property sector, scheduled for Thursday.
More details on China’s stimulus measures may be revealed at the country’s National People’s Congress later in October.
In late September, metal prices surged after a US rate cut, which weighed on the dollar, along with China’s pledges of strong stimulus measures to boost the economy.
However, as follow-up announcements from China lacked details and were below expectation, prices retreated.
LME aluminium rose 0.7% to $2,588.50 a ton, zinc edged up 0.2% at $3,058.50, lead increased 0.4% to $2,088, tin advanced 0.6% to $32,595 while nickel edged down 0.1% at $17,405.
SHFE aluminium eased 0.2% to 20,685 yuan a ton, nickel fell 0.6% to 132,940 yuan, while zinc was almost flat at 25,025 yuan, lead climbed 1.3% to 16,725 yuan and tin advanced 0.9% to 266,000 yuan.
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