London copper rose in thin trade on Monday as some investors bought the metal after last week’s sharp drop on concerns over energy prices and economic growth in top consumer China.
Three-month copper on the London Metal Exchange edged up 0.3% to $9,155 a tonne by 0350 GMT, recovering slightly from the previous week’s 2.2% fall. Trading volume was low as Chinese markets were closed for a week-long public holiday.
Copper prices were also supported by low warehouse stocks. Inventories in ShFE warehouses were at their lowest since June 2009 at 43,525 tonnes, while LME stockpiles fell to 217,175 tonnes by Sept. 30, down 14% so far in September, latest exchange data showed.
Widespread power shortage in China has raised concerns of slower growth and muted metals demand in the world’s second-largest economy.
LME aluminium advanced 0.5% to $2,871.50 a tonne, nickel increased 0.8% to $18,115 a tonne, zinc was up 1.2% at $3,017 a tonne and lead rose 0.9% to $2,160 a tonne.
An alumina refinery in Jamaica that was damaged by fire and shut down in August is not expected to be back at 100% production for another year, until the end of September 2022, operating partner Noble Group Holdings said on Friday.
The difference between LME cash nickel and the three-month contract flipped to a discount of $1 a tonne after staying in premium since Aug. 25, indicating easing tightness in nearby inventories.