LONDON: Copper prices firmed on Monday as hopes for economic stimulus in top consumer China were raised by slowing activity in the country’s industrial sector while sliding inventories suggested a tighter market.
Benchmark copper on the London Metal Exchange (LME) was 0.9% higher at $8,391 a metric ton at 1605 GMT. Prices of the metal used in the power and construction industries dropped to a four-week low of $8,141 last week.
Surveys of purchasing managers in China’s manufacturing sector suggest that the world’s second-largest economy lost momentum in the second quarter as demand weakened. “Chinese industrial activity seems to be stalling. The market is hoping the government will do more in terms of stimulus,” one metals trader said, adding that volumes would be subdued because of a US holiday on Tuesday.
The premium for the cash lead contract over the three-month contract was last at $33 a ton. Three-month lead was down 0.4% at $2,092 a ton.
Aluminium climbed 0.3% to $2,158 a ton, zinc fell 0.7% to $2,372, tin was up 2.4% at $27,430 and nickel added 0.5% to $20,620.
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