London copper prices edged higher on Monday to hover near their highest in five months, as demand prospects brightened after top consumer China relaxed some of its strict COVID-19 restrictions and announced more support for its troubled real estate sector.
Three-month copper on the London Metal Exchange rose 0.2% to $8,505 a tonne by 0309 GMT and zinc advanced 1% to $3,054.50 a tonne, while aluminium fell 1.1% to $2,435.50 a tonne and lead declined 1.2% to $2,136 a tonne.
The most-traded December copper contract on the Shanghai Futures Exchange eased 0.2% to 67,450 yuan ($9,551.79) a tonne.
The contract had jumped 6.4% last week in its best show since the week ended July 29, hitting its highest since June 16.
SHFE aluminium climbed 0.7% to 18,850 yuan a tonne, zinc advanced 0.7% to 23,960 yuan a tonne, nickel dropped 1.8% to 200,190 yuan a tonne and tin rose 0.6% to 178,240 yuan a tonne.
Chinese regulators have told financial institutions to extend more support to property developers to shore up the struggling real estate sector, two sources with direct knowledge of the matter said on Sunday.
Copper nears 5-month high on demand expectations
The Chinese property sector, which consumes a vast amount of metals, has slowed sharply this year.
On Friday, China eased some of its strict COVID rules, which market participants cheered.
The LME said on Friday it would not ban Russian metal from being traded and stored in its system because a significant portion of the market was still planning to buy the country’s metal in 2023.
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