Copper prices in London were on track on Monday for their best monthly performances since January as traders cheered the prospects of further stimulus in top consumer China and that the US Federal Reserve will pause rate hikes for the year.
Three-month copper on the London Metal Exchange was up 0.2% at $8,679 per metric ton by 0301 GMT. On a monthly basis, the contract was up 4.4%.
The most-traded September copper contract on the Shanghai Futures Exchange increased nearly 1% to 69,450 yuan ($9,724.44) per metric ton. It is set for the second straight month of gain, up 3.6%.
US annual inflation logged its smallest increase in more than two years in June, raising hopes that the Fed is close to ending its interest rate-hike cycle, which could potentially halt a dollar rally that has made greenback-priced metals pricier for holders of other currencies.
The dollar was headed for a monthly loss. Pledges from the Chinese authorities to boost the country’s troubled property sector – which accounts for a vast amount of metals consumption – have also been fuelling bullish sentiment in the metals market.
LME aluminium rose 0.2% to $2,227 per metric ton, zinc advanced 0.1% to $2,499, lead was up 0.1% to $2,160, nickel eased 0.3% to $22,240 and tin fell 0.3% to $28,650.
Shanghai copper hits two-week high; London prices ease ahead of Fed outcome
SHFE aluminium dipped 0.2% to 18,345 yuan per metric ton, tin eased 0.1% to 233,010 yuan, nickel rose 1.4% to 171,610 yuan and zinc was up 1% at 20,780 yuan.
SHFE lead has climbed 3.7% so far this month, on track for its best monthly performance since October 2021.
Source: Brecorder
