LONDON: Copper prices recovered on Wednesday as some investors regarded the recent pull-back as offering a good entry point as stock markets stabilised and amid persistent supply concerns.
Benchmark three-month copper on the London Metal Exchange rose 0.8 percent to USD10,810 a metric ton in official open-outcry trading. LME copper had shed nearly 5percent when it hit a near two-week low on Tuesday from a record peak of USD11,200 touched on October 29.
“We’re seeing some recovery in the stock market ahead of Nvidia earnings tonight, so I think there’s some positive sentiment flowing into the metals market as well,” said Ole Hansen, head of commodity strategy at Saxo Bank, in Copenhagen. “In copper, we’re seeing higher lows on the corrections, indicating that there are buyers sitting there waiting to get involved and they are not prepared to wait for a bigger drop.”
US stock index futures were slightly higher on Wednesday ahead of a high-stakes earnings report from AI poster-child Nvidia. The most-active copper contract on the Shanghai Futures Exchange closed daytime trading up 0.2 percent at 86,080 yuan (USD12,106.72) per metric ton.
A stronger Chinese yuan helped stabilize the market by making dollar-priced commodities cheaper for Chinese investors. Copper was also supported by supply concerns, sparked by mine disruptions worldwide. Freeport-McMoRan said on Tuesday it plans to resume production at Indonesia’s Grasberg mine by July 2026, in line with previous guidance, after a September flood of mud that killed seven workers and halted operations.
LME lead underperformed, dipping 0.1percent to USD2,022 a ton in official activity after touching the weakest in two weeks, following long liquidation, according to broker Marex.
Among other LME metals, aluminium advanced 0.9 percent to USD2,805.50 a ton, zinc gained 0.6 percent to USD3,005.50, nickel added 0.1percent to USD14,650 and tin climbed 1percent to USD37,225.
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