Copper climbs on China data; nickel set for best month in 2 years

LONDON: Copper prices rose on Thursday and were poised to snap a run of five straight daily declines after upbeat factory data in top consumer China, while nickel was heading for its biggest monthly jump in two years on tighter supply from Indonesia.

Benchmark three-month copper on the London Metal Exchange was up 0.9% at $13,119.50 a metric ton as of 0935 GMT. The metal used in power, construction and manufacturing was on course for a 6.2% rise in April, which would be its best month of 2026 so far on hopes the Middle East war will be contained.

China’s manufacturing sector expanded in April at its fastest pace since the end of 2020 thanks to surging new orders, a private survey showed, while copper stocks on the Shanghai Futures Exchange continue to be drawn down, falling 4.6% from last week to 192,025 tons.

The SHFE is closed on Friday for the Labour Day holiday and will not reopen until May 6.

Refined copper demand in China is forecast to grow by 2.8% this year, driven by ongoing grid investment and tighter scrap availability, CRU analyst Craig Lang said on a webinar.

With global exchange stocks at their highest since the early 2000s, recent high copper prices have been driven by fund investment, Lang added. “Our view on copper prices is that prices will decline towards $11,000 by year-end, before recovering over the medium term,” he said.

Additional price support is coming from supply-side risks to raw materials such as sulphur, ING said in a note.

Nickel, meanwhile, was up 1% at $19,465 a ton and on course to gain 13.6% this month for its biggest monthly rise since April 2024 on tighter mine production quotas in Indonesia, where smelters are also feeling the sulphur squeeze.

“Levels approaching $20,000/t increase the likelihood of additional supply being approved or reactivated,” Sucden Financial said.

Aluminium fell 0.2% to $3,482.50, zinc added 1.2% to $3,354.50, lead edged up 0.3% to $1,954.50 and tin climbed 1.5% to $49,410.