BEIJING: London copper prices inched higher on Wednesday, supported by dip-buying after the market sank to a two-week low in the previous session and signs of a demand pickup in China.
Three-month copper on the London Metal Exchange was up 0.5% at $8999 per metric ton as of 0401 GMT.
The contract fell 2.5% on Tuesday to its lowest level since Aug. 13.
The most-traded October copper contract on the Shanghai Futures Exchange lost 1.8% to 72,100 yuan ($10,140.08) a ton, hitting a more than three-week low in early trade.
The large sell-off came due to lowered risk appetite after weak US manufacturing data sparked economic concerns.
That added to the top consumer China’s lacklustre manufacturing activity, as signalled by its August official survey, and slower growth in new home prices.
Traders are bracing for more volatility as the US non-farm payroll is due on Friday. Still, a widely expected rate cut by the Federal Reserve in September and signs of a possible demand recovery in China led to buying opportunities, analysts said.
Copper claws higher on China hopes, set for monthly gain
The indicators of a demand recovery in China, said analysts, include a higher premium to buy copper in the spot market and a decline in inventory.
Guangzhou Futures analysts eyed 70,000 yuan per ton as a supporting level for Shanghai copper.
LME aluminium edged 0.3% higher to $2,414 a ton, nickel slid 0.4% to $16,395, zinc little moved at $2,844, lead increased 0.4% to $2,052.50 and tin added 0.1% at $30,780.
Shanghai nickel fell 2% to 126,150 yuan a ton, over one-month low, aluminium slipped 0.6% to 19,435 yuan, zinc dipped 0.1% at 23,655 yuan and tin lost 1.6% to 251,750 yuan, lead shed 0.4% to 17,200 yuan.
Source: Brecorder
