BEIJING: London copper prices hovered near a five-week high on Friday and were set for a third consecutive weekly gain, underpinned by a weaker dollar and bets of more stimulus in top consumer China.
Three-month copper on the London Metal Exchange eased 0.1% to $8,552 per metric ton by 0209 GMT, but has gained 2.2% so far this week.
The most-traded July copper contract on the Shanghai Futures Exchange climbed 0.6% to 68,340 yuan ($9,577.33) per metric ton, adding 2.3% so far this week.
The dollar index fell to a more than one-month low, making the greenback-priced metals more attractive for buyers holding other currencies.
Investor sentiment was boosted by US economic data showing an unexpected rise in May retail sales as consumers stepped up purchases of motor vehicles and building materials, which could help to stave off a recession in the near term.
Hopes have grown that China would unveil more measures to shore up its shaky post-pandemic recovery after new home prices rose at a slower pace in May and property investment slumped at the steepest pace in more than two decades.
That said, the copper market in China remains under pressure as actual consumption is subdued despite supply tightness in the spot market.
And, market participants expect to see an increase in supply with the arrivals of shipments from Congo as soon as late this month. Other Shanghai metals also gained.
Lower dollar and China stimulus hopes support copper
SHFE aluminium ticked up 0.3% to 18,495 yuan a metric ton, zinc added 0.3% at 20,420 yuan, lead increased 0.5% to 15,425 yuan, nickel was up 0.4% at 172,430 yuan, and tin rose 1.5% to 218,980 yuan.
LME aluminium gained 0.3% to $2,257 a metric ton, nickel added 0.5% at $23,110, while tin dipped 0.1% to $27,200, zinc shed 0.2% to $2,475.50 and lead nudged down 0.3% to $2,124.50.
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