Thursday, 02 July 2015 18:32
LONDON: Copper rose on Thursday, buoyed by signs of healthier growth prospects for top consumer China and a sliding dollar after US monthly jobs data disappointed.
Commodity markets are watching Greece, where Prime Minister Alexis Tsipras has urged Greeks to reject a bailout deal at a referendum on Sunday that may decide the country’s future in the euro zone.
Three-month copper on the London Metal Exchange was trading at $ 5,797 a tonne at 1301 GMT from $ 5,775 at the close on Wednesday. “Copper should have formed a bottom around current levels.
Demand is gaining momentum because the economy in China is stabilising,” said Commerzbank analyst Daniel Briesemann.
“My year-end target (for copper) is $ 6,500 a tonne.” Data on Wednesday showed China’s factory sector expanded slightly in June while growth in the services sector sped up, offering some signs the economy may be starting to level out slowly after a raft of support measures. Also helping copper was the lower US currency, which makes commodities priced in dollars cheaper for non-US firms.
“The dollar has had a knee-jerk reaction to the US non-farm payrolls,” a copper trader said. “It might not last, but it depends on whether people push back their expectations of when US rates rise.” US non-farm payrolls were below expectations and the May and April numbers were revised down. However, limiting copper’s gains in the near term is the seasonal third quarter demand lull.
“Physical (copper) demand is low,” Triland said in a note. Nickel was at $ 12,160 from $ 12,025 on Wednesday.
Earlier this week it tumbled to $ 10,795 a tonne, its weakest since April 2009, after the Shanghai Futures Exchange said it will accept global brands for delivery against its contract, freeing up supply. Tin was at $ 14,500 from $ 14,545.
Aluminium was at $ 1,738 from $ 1,727. Earlier in the session it touched $ 1,742, its highest since June 12.
Lead was at $ 1,787 from $ 1,784 and zinc at $ 2,040 from $ 2,046.
