LONDON: Copper prices crept higher on Tuesday after top metals consumer China unveiled more measures to support growth, the U.S. moved closer to reopening government operations and as mines continued to see shortfalls.
Benchmark three-month copper on the London Metal Exchange was up 0.3% at $10,826 a metric ton by 1100 GMT.
LME copper has gained 23% this year, hitting a record peak of $11,200 on October 29.
China’s central bank said on Tuesday it would maintain “appropriately loose” monetary policy conditions after Beijing unveiled new policy measures on Monday involving private capital investments in infrastructure projects.
“Chinese policymakers certainly have moved away from the stance a few years ago where they were quite restrictive on the economy and they’ve moved to a much more supportive state,” said Nitesh Shah, commodity strategist at WisdomTree.
The most-traded copper contract on the Shanghai Futures Exchange closed 0.4% higher at 86,630 yuan ($12,162.01) per ton.
Industrial metals also felt the afterglow of a wider rally on financial markets on Monday over the expected end of the U.S. government shutdown as the Senate approved a compromise bill on Monday.
The price of the metal used in power and construction was also supported after news that Chile’s state-owned miner Codelco, the world’s largest copper producer, produced 7% less metal in September.
Copper hit its record peak last month largely due to worries that mine disruptions would lead to shortages.
“I don’t think the deficits are in the headlines as much as there were a few weeks ago, but the reality hasn’t really changed,” Shah said.
“So I wouldn’t be surprised if, with any news items on disruptions, we go back above $11,000 again.”
Among other metals, LME aluminium dipped 0.1% to $2,866.50 a ton, zinc shed 0.8% to $3,057, lead lost 0.3% to $2,053, nickel fell 0.5% to $15,040 and tin was up 0.5% to $36,220.
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