Copper jumps to four-week peak after China data

Copper surged to a four-week high on Tuesday, boosted by data showing healthy Chinese imports and a bounce in hard-hit equity markets in the world's top metals consumer. Base metals got an added lift when US markets reopened after Monday's Labour Day holiday, prompting investors to buy futures as stops were hit, traders said.
"It's the first day back for the Americans after the long weekend and they're coming back to slightly stronger Chinese sentiment and also they missed a raft of announcements yesterday of mine suspensions and delays," said a London trader. "Also, technically copper broke a longer-term moving average, which triggered stops," he added, saying copper moved above the 10-week moving average at $5,246.
A series of supply cuts helped lift copper prices, including by London-listed mining giant Glencore, which said on Monday it planned to suspend 400,000 tonnes of output at African mines over the next 18 months. Three-month copper on the London Metal Exchange raced 3.8 percent higher, closing at $5,345 a tonne, the highest since August 11, after ending a little firmer in the previous session.
Copper has rebounded 10 percent since touching a six-year low of $4,855 a tonne on August 28, which was largely on fears of a hard landing in China. Chinese shares gained nearly 3 percent on Tuesday while the country's copper imports in August were flat from the previous month and up 2.9 percent from a year earlier at 350,000 tonnes.
"Base metals got lifted up by the equities market rally and Chinese unwrought copper imports remained healthy in August," said Xiao Fu, head of commodity market strategy at Bank of China International in London. Positive sentiment, however, may not last ahead of a September 16-17 Federal Reserve meeting, she added. "Market anticipation of a Fed rate hike could introduce some macro headwinds, so I don't think any rallies from current levels will be sustained."
Market sentiment also brightened after data showed German exports and imports hit record highs in July and the euro zone economy grew faster than expected in the second quarter. China's aluminium exports dropped again, after global premiums collapsed this year, making shipments to global markets less competitive. Global prices had been depressed by a flood of semi-manufactured exports out of the country. Aluminium skated 1.9 percent higher to end at $1,631 a tonne, while zinc gained 2.3 percent to close at $1,813 and nickel rose 2.6 percent to $10,000. Lead marched 1.3 percent higher to finish at $1,689 a tonne, but tin bucked the stronger trend and dipped 0.5 percent to $14,850.