LONDON: Copper prices inched up on Monday, supported by a weaker dollar, outflows from warehouses registered with the London Metal Exchange, and hopes of stronger import demand in China this month.
Benchmark copper on the LME rose 0.4 percent to USD9,935 a metric ton by 1600 GMT. The contract touched a five-month high of USD10,038 last week amid mounting expectations of a US interest rate cut later this month.
Import appetite in top consumer China also underpinned the market, with the Yangshan copper premium up 1.8 percent at USD58 a ton, its three-month high.
The yuan hit a one-week high against the US currency, making dollar-priced metals more attractive for Chinese buyers.
Chinese imports of unwrought copper in August fell from July to 425,000 tons but rose from a year ago, while imports of copper concentrates climbed to 2.76 million tons, a four-month high.
“Lower treatment charges failed to curtail China’s appetite for copper concentrate,” analysts at ANZ said in a note.
“Favourable import parity and prospects of weaker domestic production should keep refined copper imports strong in September.”
China’s overall export growth slowed to a six-month low in August, while imports grew 1.3 percent, following 4.1 percent growth a month earlier.
LME-registered copper stocks stood at 155,825 tons, with outflows of 2,125 tons across several locations and fresh cancellations of 8,500 tons in South Korea, LME daily data showed.
LME aluminium gained 0.8 percent to USD2,620.50 a ton as on-warrant aluminium inventories in LME storage fell to 442,425 tons, the lowest since late July, after 32,000 tons of fresh cancellations in Malaysia.
LME zinc gained 0.5 percent to USD2,875, lead climbed 0.3 percent to USD1,991.50, tin added 0.2 percent to USD34,250 and nickel was steady at USD15,230.
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