LONDON: Copper rose slightly on Wednesday and was set to post its third monthly gain in a row as factory activity in China returned to growth, although trading remained subdued ahead of a week-long holiday in the world’s biggest metals consumer.
Benchmark three-month copper on the London Metal Exchange was up 0.1percent to USD14,453 per metric ton in official open outcry activity and on course for a monthly rise of around 1.1percent. It has gained 8percent in the third quarter, having hit a record high of USD14,875 on September 10.
Activity in China’s copper-intensive manufacturing sector improved in September, with the official purchasing managers’ index rising to 50.1 from 49.8 in August.
A private RatingDog survey showed factory activity expanded at a faster pace: its PMI measure rose to a five-month high of 52.1 from 51.5. Pre-holiday demand continued to drain copper in Shanghai Futures Exchange warehouses, as stocks declined by 17.8percent from last week to 38,744 tons, the lowest since January 2024. The ShFE will close from Thursday for China’s National Day holiday, reopening on October 8.
Copper is finding support from expectations of a relatively tight market balance over the coming quarters, said ING commodities strategist Ewa Manthey. “While uncertainty around global growth and trade policy remains a consideration, structural demand trends and constrained supply growth should help keep prices well supported through Q4,” she added. The domestic premium for physical copper in China has slipped from last week’s peak of 1,375 yuan (USD205) a ton to 1,050 yuan a ton, but the Yangshan premium — a gauge of appetite for imported copper — rose slightly to USD119 a ton.
The rest of the LME complex was mixed. Nickel climbed 0.6percent to USD16,050 a ton and tin added 0.2percent to USD54,530, but aluminium slipped 0.2percent to USD3,208, hitting its lowest since August 25. Zinc shed 0.8percent to USD3,840 and lead lost 0.5percent to USD1,889.50, touching its weakest since September 17.