SHANGHAI: Shanghai copper prices rose on Monday as low inventory levels provided a cushion after prices fell for three straight weeks due to weaker-than-expected demand in China.
The most-traded June copper contract on the Shanghai Futures Exchange closed up 1.3% at 67,470 yuan ($9,755.50) a tonne, aluminium advanced 0.8% to 18,460 yuan a tonne and nickel rose 1% to 185,130 yuan a tonne.
SHFE zinc increased 1.8% to 21,535 yuan a tonne, tin was 1.4% higher at 209,730 yuan a tonne, while lead fell 0.3% to 15,275 yuan a tonne.
Copper inventories in SHFE warehouses fell to their lowest levels since Jan. 13 to 134,919 tonnes on Friday, equivalent to just over three days of China’s annual demand last year, data by the World Bureau of Metal Statistics showed.
Copper prices will likely be supported by low stocks, the maintenance of smelters in May, and potentially better demand post the Labour Day holiday as well as the metal becoming cheaper recently, brokerage Huatai Futures said in a report.
SHFE copper prices have lost 4.9% since April 17, while the three-month copper contract on the London Metal Exchange was down 6.6% since April 14.
The LME is closed for a public holiday on Monday to celebrate the coronation of Britain’s King Charles and will resume trading on May 9.
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