LONDON: Copper prices on Friday headed for their biggest weekly gain since early January as strong economic data in top consumer China raised demand hopes.
Benchmark copper on the London Metal Exchange (LME) was roughly unchanged at $8,956.50 a tonne at 1717 GMT and up around 2.8% for the week.
Prices hit a seven-month high of $9,550.50 in January but stalled amid slack Chinese demand and expectations that the US Federal Reserve will raise interest rates further, dampening economic growth and boosting the dollar.
A stronger dollar makes metals costlier for non-dollar buyers and can suppress demand.
Data this week showed Chinese factory activity increased in February at the fastest pace since 2012 and the services sector expanded rapidly. China may aim for a 6% growth rate in 2023, sources told Reuters.
However, analysts at Citi said a Chinese rebound was already priced in.
Meanwhile, a British financial regulator said it had launched an “enforcement investigation” into the LME’s handling of the nickel market last year.LME aluminium was up 0.1% at $2,401 a tonne, zinc rose 0.2% to $3,054, nickel climbed 0.4% to $24,500 and tin gained 0.1% to $24,600. Lead was down 0.8% at $2,109.50.
Aluminium, zinc and lead were headed for weekly gains, while nickel was flat and tin fell.
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