Shanghai copper hovers below record high as Chinese demand picks up, dollar weakens

Shanghai copper hovered below a record high on Thursday as Chinese demand picked up and the U.S. dollar weakened.

The most-active copper contract on the Shanghai Futures Exchange rose 0.40% to 95,640 yuan ($13,651.55) a metric ton as of 0330 GMT.

Shanghai copper hit an all-time high of 96,750 yuan a ton on Wednesday, while the London benchmark also set a peak at $12,282, nearing the $12,300 mark.

The London market is closed for the Christmas Holiday.

Copper’s rise came as Chinese demand picked up in the run-up to the holiday season.

Yangshan copper premium, a gauge of Chinese appetite for seaborne copper units, has been on the rise from the beginning of December and rallied to its highest since late September at $55 a ton, after hovering below $40 since mid-October.

Shanghai copper retreats from record high as weak China data sparks demand concerns

Investors are betting on more cuts in interest rates by the U.S. Federal Reserve next year, leading to continuing weakness in the U.S. dollar.

Elsewhere among SHFE base metals, aluminium was little changed, and lead rose 1.02%.

Zinc dropped 0.75%. Nickel saw a six-day rally end, declining 1.79%. Tin lost 1.48%.