LONDON: Prices of copper and other industrial metals extended gains on Friday, boosted by a weaker dollar, optimism about top metals consumer China and persistent smelter shutdowns curbing supply.
Three-month copper on the London Metal Exchange had gained 2.1% to $7,971 a tonne by 0945 GMT after rising by 2.5% on Thursday. The contract has climbed 4.5% so far this week, the most since the week ended July 29.
Data on Friday showed China’s consumer prices rose at a slower-than-expected pace while producer inflation hit an 18-month low, leaving room for further central bank policy easing.
Aluminium inventories on the LME had been steadily falling this year, but strong inflows this week have pushed up the total by 21%. Helping boost prices was a pullback in the dollar index, making commodities priced in the US currency cheaper for buyers using other currencies. Copper prices have been supported by tight supply of immediately available metal. The premium of LME cash copper over the three-month contract ended at $108.50 a tonne on Thursday, its highest since November 2021.
Copper demand in China has improved since last month, CRU analyst He Tianyu said, adding that consumption of the metal is expected to be stronger in the fourth quarter.
Source: Brecorder
