Prices of copper and other base metals in London climbed on Tuesday as traders welcomed top metals consumer China’s decision to cut borrowing cost for the first time in 10 months to prop up its economic growth.
China’s central bank lowered its seven-day reverse repo rate for the first time since August, in a move that typically signals potential changes in longer-term rates, to restore market confidence and prop up a stalling post-pandemic recovery.
Base metals are widely used across industries, so better economic growth is likely to boost demand for metals.
Three-month copper on the London Metal Exchange rose 0.2% to $8,327 per metric ton by 0300 GMT, while the most-traded July copper contract on the Shanghai Futures Exchange was up 0.1% at 67,150 yuan ($9,373.26) per metric ton.
Copper under pressure ahead of China data, Fed decision
A softer dollar, pressured by caution ahead of key US inflation data due later in the day, also helped make greenback-priced cheaper to holders of other currencies.
LME aluminium advanced 0.3% to $2,235.50 per metric ton, zinc rose 0.5% to $2,361, nickel rose 1.2% to $21,000, lead fell 0.5% to $2,063.50, tin decreased 0.4% to $25,800.
SHFE aluminium fell 0.2% to 18,290 yuan per metric ton, nickel dropped 1.3% to 160,880 yuan, zinc was almost unchanged at 19,825 yuan, tin fell 1.2% to 209,990 yuan while lead shed 0.6% to 15,320 yuan.
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