Copper rises on US rate-cut bets; speculative interest fades

SHANGHAI: Copper prices rose on Monday, supported by growing prospects of a December US rate cut following dovish signals from central bank officials, though analysts noted that speculative interest in the metal has faded in the absence of strong market drivers.

The most-active copper contract on Shanghai Futures Exchange was up 0.36% at 86,310 yuan ($12,144.36) per metric ton, as of 0235 GMT.

Shanghai contract followed upbeat performances in its London peers, as the benchmark three-month copper closed higher on Friday.

The London copper edged 0.22% higher to $10,801 a ton on Monday.

Gains in copper found support as traders ramped up their prospects over US rate cuts in December.

New York Fed president John Williams said that the US central bank can still cut rates in the near term without putting its inflation goal at risks.

BHP on Monday pulled back from its last effort to buy Anglo American to boost its dominance in copper, the Australian mining giant said in a release to Australia’s securities exchange.

Copper is currently hovering at elevated levels after retreating from record-high sessions, without fresh macro or fundamental catalysts to drive a breakout for the red metal in either direction, higher or lower, analysts said.

Speculative interest in copper has ebbed, as the market is directionless at the moment, analysts at Chinese broker Jinrui Futures said in a note.

The most-traded nickel contract rose 1.17% to 116,130 yuan a ton, while the three-month nickel gained 1.21% to $14,630 a ton.

QMB New Energy Materials, an Indonesia-based nickel and cobalt processing project, cut production by half at least after local environment ministry identified problems with its tailing treatment, Reuters reported on Friday.

Among other SHFE base metals, aluminium dipped 0.30%, zinc dropped 0.36%, lead nudged 0.15% lower, and tin rose 1.21%.

Among LME metals, aluminium gained 0.72%, zinc climbed 0.38%, nickel rose 1.21% and tin was up 1.30%.