BEIJING: Copper futures climbed on Monday to hit their highest in more than a week, aided by a softer dollar and China demand hopes, even though supply concerns eased after Codelco got the nod to restart operations at the El Teniente mine in Chile.
The most-traded copper contract on the Shanghai Futures Exchange closed morning trade 0.75% higher at 79,010 yuan ($11,005.25) a metric ton, the highest since July 30.
Benchmark three-month copper on the London Metal Exchange touched an intraday high of $9,789 a ton, the highest since July 31.
A softer dollar amid growing expectations for a US interest rate cut in September supported prices of copper, which is used in power and construction.
A weaker dollar makes commodities priced in the greenback less expensive for buyers using other currencies.
Also, underpinning copper prices were expectations of growing demand from top consumer China in the peak demand season in September.
However, gains were curbed by easing supply concerns as miner Codelco received authorisation from Chile’s labour inspector office to begin resuming certain operations at its flagship El Teniente copper mine.
Operations at the mine were suspended for more than a week following a deadly collapse that killed six workers.
Weaker-than-expected China factory-gate data also capped the gains in copper prices.
China’s producer prices fell more than expected in July, underscoring the impact of sluggish domestic demand and persistent trade uncertainty on consumer and business sentiment.
SHFE zinc rose 0.51%, lead advanced 0.57%, nickel ticked 0.7% higher, while tin and aluminium were little changed.
LME zinc rose 0.16%, tin and lead added 0.42%, nickel climbed 0.76%, while aluminium was little changed.
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