BEIJING: Copper prices in Shanghai climbed to a two-week peak on Wednesday, underpinned by better demand outlook following top consumer China’s decision to roll out fresh stimulus measures to support the economy.
The most-traded December copper contract on the Shanghai Futures Exchange rose 1.1% to 66,900 yuan ($9,149.34)per metric ton by 0351 GMT, the highest since Oct. 10.
Three-month copper on the London Metal Exchange held its ground at $8,057 per ton, at a two-week high.
China’s top parliament approved a 1 trillion yuan bond issue, the state media reported, adding that the funds would be spent rebuilding disaster zones and improving infrastructure.
The boost in fiscal stimulus demonstrated the top leadership’s commitment to boosting economic growth even as the 5% full-year GDP growth target is almost guaranteed, analysts said.
Market confidence was also boosted in October by strong demand for copper, the metal used for construction, power and transportation sectors, and as a price drop in recent weeks further prompted buying, according to the Shanghai Metals Market (SMM).
Copper prices hit 11-month low
Operation rates among refined copper rod producers hit a two-year high at 85.5% last week, an SMM survey showed.
The dollar was on the front foot on Wednesday, drawing support from yet another resilient US economic data reading.
Still, strong demand outlook offset pressure from a firmer dollar, which typically makes the greenback-priced commodity more expensive for overseas buyers.
LME aluminium climbed 1% to $2,212 a ton, tin added 0.4% to $25,200, zinc climbed 0.8% to $2,461.50, while nickel moved 0.2% lower to $18,240, lead lost 0.4% to $2,101.50.
SHFE aluminium rose 1.1% to 19,100 yuan a ton, zinc was up 1% at 21,225 yuan, nickel gained 0.1% to 147,210 yuan, tin gained 0.8% at 215,700 yuan, while lead slid 0.2% to 16,425 yuan.
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