Copper prices in Shanghai climbed to their highest in more than three weeks on Monday, supported by a rebound in demand in China and on hopes of a US rate cut in September.
The most-traded October copper contract on the Shanghai Futures Exchange rose 1.3% to 74,520 yuan ($10,463.35) a ton by the midday break.
The contract climbed as much as 1.6% earlier in the session to 74,770 yuan, the highest since Aug. 2.
Copper wire rod makers have been increasing their orders after prices fell recently and as their downstream customers – grid companies – ramped up output to meet annual production targets, said CRU analyst He Tianyu.
The power sector is one of the biggest consumers of copper. SHFE copper price is now 17% below a record high of 89,290 yuan a ton hit on May 20.
China’s peak consumption season usually starts from mid-September, which might be disrupted if prices return to $10,000 a ton on the LME or 80,000 yuan a ton on SHFE, said He.
SHFE aluminium rose 0.3% to 19,875 yuan a ton, having hit 19,990 yuan earlier in the session, the highest since July 16, on supply concerns and US rate cut expectations.
Federal Reserve Chair Jerome Powell on Friday endorsed an imminent start to rate cuts, which could support economic and metals demand as well pressure the dollar, making greenback-priced metals cheaper to holders of other currencies.
London copper eases as dollar rebounds from 8-month low
SHFE zinc hit the highest since July 17 at 24,175 yuan a ton, tin eased 0.4% to 265,830 yuan but still hovered near its one-week high level hit in the previous session.
China’s Yunnan Tin, the world’s largest refined tin producer, began the maintenance of its smelting equipment from Aug. 25, which is expected to last up to 45 days.
SHFE nickel climbed 1.2% to 131,040 yuan and lead increased 1.3% to 17,620 yuan.
Source: Brecorder
