Copper prices rose on Friday and were set for their second straight week of gains, as a weaker dollar offset demand concerns from top consumer China, where downbeat economic data dented the outlook.
Three-month copper on the London Metal Exchange advanced 0.6% to $8,190 per metric ton by 0432 GMT, while the most-traded December copper contract on the Shanghai Futures Exchange rose 0.4% to 67,730 yuan ($9,260.96) a ton.
A weaker dollar, dragged by bets of no further rate hikes, made greenback-priced commodities cheaper to buyers using other currencies and offset China’s slowing down of activities in the manufacturing sector that consumes a lot of metals.
“Industrial metals continue to face headwinds from weak activity in Mainland China,” Fitch Solutions analysis unit BMI said in a report.
“At the same time, expectations of a weakening of the US dollar in the coming weeks helped prop up prices,” it said, adding that the prospect of further stimulus in China is also increasing.
Copper higher on hopes of peak Fed rates, weak dollar
LME aluminium increased 0.6% to $2,240.50 a ton.
SHFE aluminium eased 0.2% to 19,200 yuan a ton but was set for the biggest weekly gain since Sept. 1, as smelters in China’s Yunnan province trimmed production due to limited hydropower sources in the dry season.
LME nickel advanced 0.6% to $18,090 a ton, zinc increased 0.8% to $2,497.50, lead was up 0.5% at $2,133.50 and tin climbed 1.7% to $24,370.
SHFE nickel rose 0.6% to 142,420 yuan a ton, lead increased 1.4% to 16,590 yuan, tin advanced 1% to 207,700 yuan, while zinc fell 0.2% to 21,415 yuan.
Source: Brecorder
